Kraken Completes Mt. Gox Payouts Without Triggering Bitcoin Sell-Off

Kraken has completed the repayment process for Mt. Gox creditors without triggering the expected Bitcoin sell-off.

Dave Ripley, CEO of Kraken, confirmed that the exchange has finished distributing the owed Bitcoin (BTC) and Bitcoin Cash (BCH) to the creditors of the defunct Mt. Gox exchange.

This update was shared on July 24 via a post on the social media platform X.

Investors had been concerned that the repayments would lead to a massive sell-off, causing a sharp decline in Bitcoin’s price. Approximately 127,000 creditors have been waiting for more than a decade to reclaim their funds, which now amount to over $9.4 billion in Bitcoin.

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Despite the significant potential for sales, Kraken’s trading data indicates that creditors are holding onto their Bitcoin. According to Ki Young Ju, CEO of CryptoQuant, there has been no noticeable increase in Bitcoin trading volume or outflows on Kraken since the repayments were made.

Ju commented on X on July 24, noting that the absence of a trading spike is a positive indicator. However, he cautioned that some sell pressure might still emerge, particularly from Asia.

The general consensus among analysts, including RunnerXBT, is that only those with weak resolve, often referred to as “paper hands” in crypto jargon, are likely to sell their Mt. Gox Bitcoin. Therefore, any sell-off is expected to cause only temporary fluctuations in Bitcoin’s price.

Alexander Stefanov