Crypto
Massive Sell-Off: Mt. Gox Bitcoin Payout Fears Wipes Out $170 Billion From Crypto Market
The cryptocurrency market experienced a substantial downturn on Friday, compounding the selling pressure witnessed over the past two weeks. The leading cryptocurrency, Bitcoin (BTC), retraced over 20% from its highs in June and May, dropping as low as $53,500.
The market decline was largely attributed to the long-awaited trustee overseeing the Mt. Gox bankruptcy, who announced the commencement of Bitcoin and Bitcoin Cash repayments to creditors affected by the infamous hack that resulted in billions in losses.
As a result, the entire cryptocurrency market shed over $170 billion in combined market capitalization in just 24 hours.
Bitcoin Repayments And German Government Sell-Off
The trustee responsible for the Mt. Gox bankruptcy estate, Nobuaki Kobayashi, stated that Bitcoin and Bitcoin Cash repayments had begun through designated crypto exchanges.
While the amount transferred to these exchanges was not specified, data from market intelligence platform Arkham revealed that 47,229 BTC, valued at $2.71 billion, had been transferred to an unknown address.
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Kobayashi emphasized that the remaining funds would be returned to creditors once “specific conditions” were met, including verifying registered accounts and finalizing discussions with the designated exchanges.
The decline in crypto prices led to substantial liquidations in the derivatives markets, with over 229,755 traders experiencing combined liquidations worth $639.58 million in the past 24 hours. Of this amount, $540.46 million represented long trades, indicating positions taken by investors expecting long-term asset appreciation.
Additionally, the German government contributed to the market pressure by selling approximately 3,000 BTC, equivalent to around $175 million, from a seized stash of 50,000 BTC associated with the movie piracy operation Movie2k. Despite the sell-off, the government still holds over 40,000 BTC, valued at over $2 billion.
What Historical Price Cycles Suggest
Despite the ongoing bloodbath witnessed in crypto prices over the past month, industry insiders and analysts remain optimistic about Bitcoin’s future performance.
Despite the short-term selling pressure resulting from Mt. Gox repayments, experts anticipate a rebound towards the end of the year. Crypto data and research firm CCData suggested that Bitcoin’s current appreciation cycle has not yet peaked and will likely achieve a new all-time high.
Historical market cycles indicate that Bitcoin’s Halving event, which reduces the supply of new BTC, typically precedes a period of price expansion between 12 and 18 months. The most recent Halving occurred in April, suggesting potential further growth into 2025.
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Tom Lee, co-founder and head of research at Fundstrat Global Advisors, told CNBC that he predicts that Bitcoin will hit $150,000 despite the Mt. Gox overhang.
The launch of an Ethereum exchange-traded fund (ETF) in the US and the approval of the first US spot Bitcoin ETF earlier this year contribute to the overall positive sentiment in the market, indicating potential growth and further mainstream adoption of cryptocurrencies.
At the time of writing, BTC is trading at $55,680, reflecting a significant 21% drop in price over the past month. Bulls in the market are closely monitoring the $54,480 price level, representing substantial support for BTC. This level holds critical importance as it could prevent further price declines and the risk of breaking below the crucial $50,000 level.
Featured image from DALL-E, chart from TradingView.com
Crypto
Hong Kong firm HKVAX gets approval to run city’s third cryptocurrency exchange
With its expertise in security token offerings (STO) and real-world asset (RWA) tokenisation, HKVAX aims to offer over-the-counter trading, exchange and custody services, the company said in a statement published on Friday.
The licence “demonstrates Hong Kong’s resolve to lead in the virtual-asset industry”, while HKVAX aims to establish the city as “the STO and RWA centre for Asia and beyond”, co-founder and chief executive Anthony Ng said in the statement.
The company’s trading platform and onboarding system are still “undergoing final preparations”, the company said in a notice on its website.
Crypto
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Crypto
Deadline Extended! Argentinians Seize Last Chance for Cryptocurrency Amnesty!
- Local exchanges like Bitso and Lemon report significant increases in digital currency deposits since the amnesty’s announcement.
- Carlos Peralta of Bitso noted a surge in inquiries, suggesting higher future participation before the deadline extension.
In Argentina, the cryptocurrency amnesty program, initiated in July, has surprisingly exceeded expectations according to local exchanges. This initiative allows Argentinians to declare their cryptocurrency holdings to the government without fear of repercussions.
The deadline for this declaration has been extended to October 31
The Argentine government has extended the deadline for asset regularization through Decree No. 864/2024, published on September 30, 2024. This extension modifies the dates of the regime established by Law No. 27.743 on Palliative and Relevant Fiscal Measures, allowing fiscal residents in Argentina and non-residents who were previously fiscal residents to voluntarily declare assets both domestically and abroad until October 31, 2024, for the first stage. The subsequent stages have been extended to January 31, 2025, and April 30, 2025, respectively.
Furthermore, the decree specifies that funds regularized up to September 30, 2024, can be withdrawn starting October 1, 2024, without retention, provided that no new regularizations are made after that date. Funds not exceeding USD 100,000 will be exempt from retention starting November 1, 2024, and those exceeding that amount must be kept in special accounts or allocated to authorized investments until December 31, 2025, to avoid a 5% retention.
Fiscal transparency and the integration of undeclared assets into the formal economy
Representatives from cryptocurrency exchanges such as Bitso and Lemon have reported a significant uptake in participation since the program’s announcement. They observed a record increase in digital currency deposits, suggesting a strong willingness among Argentinians to comply with the new regulations.
Carlos Peralta, the leader of Public Affairs at Bitso Argentina, noted a spike in inquiries even before the extension was announced, indicating a high level of interest.
“Perhaps now with more time, they decide to enter” Peralta commented, hinting at the potential for even greater participation in the coming weeks.
Similarly, Juan Pablo Fridenberg, Director of Public Affairs at Lemon, highlighted that September saw the highest volume of cryptocurrency deposits in the platform’s history.
“Although we do not know how many users have effectively joined, as this information is only available to the Federal Administration of Public Revenue (AFIP), we can affirm that the volume exceeded July’s by 23%,” said Fridenberg.
As we usually report on Crypto News Flash, this initiative by the Argentine government aims to bring transparency to the cryptocurrency market, which has traditionally operated with minimal oversight. By encouraging citizens to declare their digital assets, the government hopes to integrate these into the formal crypto economic system, reducing the risks associated with unregulated markets.
The positive response from the public and the extension of the deadline reflect the growth, as we have been reporting on Crypto News Flash, this may accept and normalize cryptocurrencies in Argentina. This move is part of a broader effort to stabilize the financial system and restore trust among investors and the public in the potential of digital currencies as legitimate financial assets.
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