July 16, 2024

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Mt. Gox Creditors Report Bitcoin Transfers to Kraken, Payouts Expected Within 7-14 Days

Mt. Gox creditors have reported that Kraken received Bitcoin and Bitcoin Cash transfers from the Rehabilitation Trustee. A screenshot of an email from Kraken, shared in the Mt. Gox creditors Telegram group, confirms the transfers. Kraken indicated that the funds will be distributed within 7-14 days according to the Trustee's instructions. Earlier, Mt. Gox wallets moved 48,641 BTC ($3.1 billion) to an unlabeled address. The Trustee, Nobuaki Kobayashi, confirmed that repayments in Bitcoin and Bitcoin Cash have been made to over 13,000 creditors. Other exchanges like Bitbank and SBI VC Trade have already distributed their allocated funds. Mt. Gox, once the largest Bitcoin exchange, suffered a major security breach in 2014, losing 850,000 Bitcoins. Creditors are expected to be reimbursed with 142,000 BTC, 143,000 BCH, and 69 billion Japanese yen by October 2024.

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Metaplanet Japan Buys Another $1.2 Million in Bitcoin, Shares Surge 26%

Japanese investment firm Metaplanet Inc. saw its stock rise by 25.8% during the Tuesday morning session after announcing an additional $1.26 million Bitcoin purchase. This acquisition brings its total bitcoin holdings to approximately $14.2 million. Metaplanet, which started adopting bitcoin as a strategic treasury reserve asset in response to Japan's economic pressures, disclosed it now holds 225.611 BTC. The firm's stock surge follows a series of Bitcoin purchases, with the most recent prior purchase occurring on July 8.

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Cipher, Coinbase, and MicroStrategy Lead Crypto Stock Surge After Bitcoin Rebounds

Bitcoin, which had been trading under $60,000 for much of the past 10 days, rebounded to break the $63,000 level, leading to a significant rally in cryptocurrency stocks on U.S. indices on Monday. Cipher Mining’s stock surged over 27%, while Coinbase, Marathon Digital, Hut 8, Riot Platforms, and Cleanspark saw gains between 15% and 19%. The rise in bitcoin followed former U.S. President Donald Trump surviving an assassination attempt and choosing crypto-friendly Sen. J.D. Vance as his 2024 running mate, alongside BlackRock CEO Larry Fink's endorsement of bitcoin as a "legitimate financial instrument." Coinbase's stock closed up more than 11% at $242.85 per share, its highest level in a month, and MicroStrategy's stock rose by 15.3% to $1,623 after announcing a 10-for-1 stock split effective Aug. 1. Analysts at Berstein also highlighted favorable conditions for bitcoin mining, noting potential pro-bitcoin political changes and the U.S. emerging as a dominant hub for bitcoin mining. Iris Energy was the only bitcoin miner to close in the red, down 2.56%, after a negative valuation thesis from a short-seller. At the time of publication, bitcoin was up 5.6% to $63,743, while the GMCI 30, tracking the 30 largest cryptocurrencies by market cap, was up 4.9% to 132.12.

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Trading Desk Insights

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BTC encountered renewed selling pressure on Tuesday, triggered by blockchain data indicating that the now-defunct exchange Mt. Gox commenced internal coin movements in preparation for potential creditor repayments. The decline was marked by an initial transfer of 0.021 BTC ($1,000) to a specific wallet address, likely a test transaction, which was followed by a substantial transfer of 44,527 BTC ($2.84 billion) to an internal wallet.

Currently, BTC is testing its 50-day moving average, which could serve as short-term resistance. Should prices retract from this level, we may observe a correction towards the $60,000 - $62,000 range, aligning with the 20-day moving average.

In other significant developments, the much-anticipated U.S.-listed ETH ETFs are slated to begin trading next week. The SEC has responded to issuers, requesting the final S-1s by Wednesday and suggesting that effectiveness be requested on Monday after market close, with a planned launch on the 23rd, coinciding with the BTC conference in Nashville where Trump will be present. Market projections indicate net inflows for these ETH ETFs could range between 30% and 40% of BTC equivalents.

Meme coins have outperformed the broader market, as traders pivot towards higher beta assets. The $53 billion meme coin sector surged over 12% on Tuesday, with PEPE and WIF experiencing gains of 22% and 25%, respectively. However, the market depth for these coins is only 10% of that of BTC and ETH, indicating that a series of liquidations and market orders could cause significant volatility in meme coins compared to larger tokens like BTC and ETH.

Meanwhile, equity futures edged higher on Tuesday, bolstered by positive retail data. This movement follows a winning day on Wall Street, which saw the Dow reach all-time highs. Investors are betting that the failed assassination attempt on former President Donald Trump will benefit his candidacy and the Republican Party in the upcoming November elections. A GOP victory could lead to favorable tax and fiscal policies for investors.

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Disclaimer

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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

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