As confirmed by last week’s news report, Mt Gox sold off Bitcoin worth 400 million dollars to repay its debts to creditors. There will be no further liquidation until September, which is a little bit heartening. It has been bullish for Bitcoin stockholders to hear the newsflash that the Tokyo Whale is taking a 6-month break from selling the virtual currency.
Mt Gox had pulled down the shutters on its exchange platform owing to a robbery of 850000 Bitcoins. Kobayashi mentioned that governing approval is required to discharge the remaining stash of 166000 Bitcoins that is priced at 1.6 billion dollars.
The price of Bitcoin has recovered a little earlier in the week by 6.96% from Friday’s low to a peak of 9885.92 dollars on Monday. However, later on, the price of Bitcoin dipped to 9241 dollars on the same day. The price of Bitcoin continued on its downward trend, by dipping to less than 10000 dollars or by 18% of its price over a couple of weeks, due to the tightening of regulatory inspection on crypto currency exchange platforms in the previous week.
Even though the liquidation by Mt Gox is in a paused mode, there are still other obstacles to face for Bitcoin. Controversial news of compromise of accounts in an exchange platform of Hong Kong and the worrisome scrutiny made by the SEC on cryptocurrency exchanges besides the news updates from Japanese regulators further fueled the worries and concerns of crypto investors. A board of regulation of exchange based in Chicago warned that the Bitcoin contracts of futures will expire on Wednesday which propelled the downward trend even more.
Jack Tatar said that Mt Gox has adversely affected the crypto market, and if this is removed from the table, then there can be a hope for a rise in prices.