- Kraken has completed the distribution of BTC and Bitcoin Cash to Mt. Gox creditors after 10 years.
- The distribution of $2.85 billion in BTC has led to a significant price drop, with Bitcoin falling nearly 3% from $67,359 to $65,484.
In a significant update for the cryptocurrency community, Kraken announced the successful distribution of Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors affected by the Mt. Gox hack nearly a decade ago. The now-defunct exchange’s long-awaited fund recovery process has been facilitated by Kraken, alongside Bitstamp and other partners.
On Tuesday morning, Mt. Gox trustees began transferring $2.91 billion worth of BTC to new wallets, primarily to distribute 5,110 BTC, valued at approximately $340.1 million, to four separate Bitstamp addresses. However, the exact amount returned by Kraken to Mt. Gox customers is still unclear.
The Mt. Gox Trustee has been working with several exchanges, including Kraken and Bitstamp, to ensure a fair return of funds to affected users. Despite this distribution, Mt. Gox still holds a substantial 95,340 BTC, valued at approximately $5.96 billion.
Following the release, Bitcoin saw a price correction of approximately 3%, currently trading around $65,855. This recent dip follows a high of $68,474 recorded on July 22, after Bitcoin broke through the $65,000 resistance level. Additionally, the daily trading volume of BTC declined by over 23%, now standing at $33 billion. This market reaction was evident as users confirmed the deposits in their wallets.
Bitcoin Price Trends and Key Levels to Watch
On-chain data analysts, CryptoQuant have observed that the price decline has impacted short-term BTC holders, emphasizing the need to monitor crucial support levels, particularly around $63,600. Despite the recent drop, Bitcoin has managed to maintain its position above the $65,500 level, trading at $65,855 with a market capitalization of $1.29 trillion.
Technical indicators suggest a potential recovery for Bitcoin. The cryptocurrency remains above its 50 and 100-day moving averages, and there is a potential double-bottom pattern forming with bullish divergence in the relative strength index (RSI). If key support at $66,500 holds, Bitcoin could see a rebound towards $68,850.
Support levels are currently observed between $64,350 and $63,757, with critical levels to watch including $61,751 and the 200-day moving average above the $60,000 mark. Despite recent volatility, Bitcoin’s long-term outlook remains positive, bolstered by its performance above major moving averages.
