Mt. Gox Creditors HODL Bitcoin (BTC) as the Market Absorbs the Reintroduction of 59K BTC

Mt. Gox was once a dominant cryptocurrency exchange, but a devastating security breach caused it to collapse and left approximately 127000 creditors waiting to recover their funds.

Mt. Gox was once a dominant cryptocurrency exchange, but a devastating security breach caused it to collapse and left approximately 127,000 creditors waiting to recover their funds.

Those creditors have waited over a decade to get their hands on their Bitcoin BTC $56,067 , but surprisingly, many are still just holding onto it.

BTC

$56,067

Data shows that nearly half of the Bitcoin owed to Mt. Gox creditors — 59,000 out of a total of 141,686 BTC — has already been distributed.

Despite the over $3.2 billion in Bitcoin appropriated to creditors, the market hasn’t seen a sell-off related to that distribution.

While Bitcoin’s price plunged nearly 20% over the past week, that sell-off was seemingly completely unrelated to the Mt. Gox distributions. Instead, it was the result of a perfect storm based on weaker economic data in the United States and the Bank of Japan raising interest rates, ending what’s known as the yen carry trade.

According to a Glassnode report, the Mt. Gox distribution “represents the final chapter in a major market overhang over the industry since 2013” from a psychological perspective.

Opting to receive claims in BTC rather than fiat currency and resisting attempts from several entities to acquire their claims throughout the legal process could mean creditors have a long-term hodler mentality.

Long-term Bitcoin hodlers

That long-term hodler mentality may be behind the lack of a creditor-related sell-off. Speaking to Cointelegraph, Bitpanda deputy CEO Lukas Enzersdorfer-Konrad said that while there are factors unique to each individual creditor, it’s worth remembering that Mt. Gox was one of the earliest exchanges around, so people using it “were early adoptions.”

Maria Carola, CEO of cryptocurrency exchange StealthEX, told Cointelegraph that these creditors are opting to hold onto their coins “primarily due to expectations of future price appreciation, aiming for potentially higher returns.”

She added that liquidating their funds right away “could mean significant capital gains taxes,” while holding onto the funds could allow investors to “delay these taxes or await more favorable market conditions.”

StealthEX’s CEO also added that many creditors “view Bitcoin as a long-term asset with substantial value appreciation potential.”

Glassnode’s report details that, given the extensive period between the Mt. Gox collapse and the current state of the market, various creditors likely remain “somewhat active” in the cryptocurrency space.

On social media, some investors have revealed themselves as Mt. Gox creditors who received some of their claims. One investor published a post accompanied by an email revealing their account was successfully credited, revealing that they got 20% of the funds they had on the exchange.

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Nevertheless, they plan to keep holding onto their Bitcoin by moving it to a cold storage wallet, though in replies to other users, they suggest their Bitcoin Cash BCH $315 will be sold “soon.”

BCH

$315

Other users on the platform also suggested they would be selling their Bitcoin Cash and converting it into Bitcoin. This conviction in Bitcoin could be a result of several factors supporting the cryptocurrency’s bullish narrative.

Mt. Gox creditors holding may not be that surprising

Mt. Gox collapsed in 2014 after the exchange lost 850,000 BTC in a massive security breach that sent the Bitcoin price plummeting.

Speaking to Cointelegraph, a Binance Research representative said that Mt. Gox creditors were forced to hold onto their coins as their price surged over 10,000% to over $65,000 before the recent correction. They added:

The spokesperson said the decision to hold onto BTC is further supported by Bitcoin’s strong performance year-to-date, “highlighted by the successful launch of spot Bitcoin ETFs [exchange-traded funds]” that attracted over $17 billion in net inflows so far.

Other Bitcoin tailwinds include its fourth halving, which reduced annual supply growth and reinforced its fixed supply, as well as its ecosystem expansion with developments in non-fungible tokens, decentralized finance and layer-2 solutions.

Bobby Zagotta, CEO of Bitstamp US, told Cointelegraph that to many, “Bitcoin is viewed and treated like an appreciating asset,” adding that Mt. Gox creditors “have seen their Bitcoin holdings appreciate by 89,000% since they lost access to them, so they may be even more inclined to continue to hold.”

To Binance Research, the “increasing legitimization of Bitcoin and crypto as significant technologies” is now evident, as exemplified by former US President Donald Trump’s speech at the

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