Kraken informs users about Mt. Gox reimbursement funds

Mt. Gox, which collapsed in 2014, has started reimbursing affected parties in Bitcoin and Bitcoin Cash.

• Kraken users received an email from the exchange regarding the receipt of Mt. Gox reimbursement funds.
• Funds will be distributed within seven to fourteen days.
• Arkham Intelligence flagged a transfer of 48,641 BTC, valued at $3.1 billion, from a Mt. Gox trustee wallet to a possible Kraken-associated wallet on July 16.

In recent weeks, Mt. Gox has been moving funds from cold wallets to hot wallets under its control. According to data from Arkham Intelligence, Mt. Gox currently holds 138,985 BTC worth approximately $8.93 billion.

Expert Opinions

The crypto community is divided on the impact of Mt. Gox reimbursements on the markets. Analysts have varying views:

• Matthew Hyland predicts Bitcoin could drop to $38,000 due to selling pressure.
• Stockmoney Lizards sees a potential crash but with a price floor of $50,000.
• ZackXBT believes the market effect will be short-term, affecting only investors with low conviction in Bitcoin.

However, Jacob King warns that up to 99% of Mt. Gox’s unsecured creditors may dump their BTC holdings, potentially impacting the market.

Institutional Support

Institutional Bitcoin investors could provide liquidity to offset Mt. Gox-related volatility:

• Weekly inflows into Bitcoin investment vehicles exceeded $1.35 billion, as reported by the CoinShares Fund Flows report on July 15.
• Santiment data shows a shift in market sentiment from “extreme fear” to “greed” on July 16, following positive market developments.