The price of Bitcoin Cash (BCH) has declined following the commencement of the Mt. Gox repayment program. Mt. Gox, a defunct cryptocurrency exchange, transferred 48,641 BTC to the Kraken crypto exchange for distribution to its creditors. This transfer marks a significant event in the crypto market, influencing the supply dynamics and prices of BTC and BCH.
Kraken’s CEO, David Ripley, confirmed the successful transfer of these assets back to Mt. Gox creditors through the exchange. Subsequently, creditors started withdrawing their BTC and BCH tokens from Kraken, leading to a massive inflow of these tokens into the market. This influx exerted significant downward pressure on the price of Bitcoin Cash, causing noticeable price dips.
Furthermore, Mt. Gox sent additional BTC to the Bitstamp crypto exchange, contributing to increased market volatility. BCH saw a near 3% decline in the past 24 hours due to these activities. The repayment scheme, which began in July, involves five exchanges, including Kraken and Bitstamp, distributing payments to Mt. Gox creditors.
Data from Arkham indicates that Bitstamp received 5,110 BTC worth $340.1 million, spread across four wallet addresses. Mt. Gox has moved $2.85 billion worth of Bitcoin to new wallets and distributed 5,110 BTC to Bitstamp addresses, leaving its wallet holding 85,234 BTC valued at $5.70 billion.
Altinvest.finance reports that while a significant amount of Bitcoin is still awaiting distribution, the progress made so far is a positive development. They advised stakeholders to remain vigilant and patient during this period, anticipating price fluctuations and renewed regulatory discussions to protect investors and ensure market stability.
Despite the recent decline, Bitcoin Cash has shown signs of recovery. After suffering a price drop between July 22-23, BCH found support at the $362.04 price level and formed a green candle on the daily chart, suggesting potential for recovery.
BCH is currently trading above the median band of the Donchian Channel, indicating a possible price increase. The RSI is at 47.72, suggesting that a move above 50 could signal a bullish trend. The Crypto Fear and Greed Index indicates that investor sentiment remains optimistic, hinting at positive price action for BCH in the coming weeks.
