Bitcoin

Bitcoin Recovers to $57,000 After Mt. Gox Refunds Fuel Liquidation

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Bitcoin experienced a slight recovery on Monday morning, rising by 0.29% and trading around $57,000.

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The leading cryptocurrency fell to $55,000 on Friday as Defunct cryptocurrency exchange Mt. Gox has started paying its creditors in Bitcoin worth billions of dollars, leading to a massive liquidation by creditors. Even with the recent recovery, however, Bitcoin is still down more than 8% from last week’s high.

Tokyo-based Mt. Gox, formerly the world’s largest Bitcoin exchange, should return more than 140,000 Bitcoin—worth $9 billion—to victims of a 2014 hack. The exchange handled nearly 70% of all Bitcoin transactions at the time when it fell victim to one of the first major attacks on cryptocurrencies. The exchange declared bankruptcy that year, owing creditors 45 billion yen ($414 million). Creditors have been waiting for their stakes to be paid ever since.

Bitcoin’s rally this week appears to have impacted the entire cryptocurrency market. On Monday, Ether surpassed the $3,000 mark with a gain of 1.5%. Cardano and Dogecoin saw increases of 4% and 0.4%, respectively.

The German government is also selling Bitcoin

Amid a massive sell-off, the German government has been unloading hundreds of millions of dollars worth of Bitcoin — potentially impacting the price of Bitcoin. The sales are being conducted by the country’s Federal Criminal Police Office, known locally as the Bundeskriminalamt, or BKA.

The BKA is selling Bitcoin confiscated from a now-defunct movie piracy website, according to on-chain data tracked by blockchain analytics firm Arkham Intelligence. Last week, the government sold an additional 3,000 Bitcoins, valued at approximately $172 million. On Monday, German police sold another 2,739 Bitcoins, the equivalent of US$155 million in cryptocurrency. The government has been transferring its cryptocurrency reserves to major exchanges such as Coinbase, Bitstamp and Kraken.

Spot Bitcoin ETFs See Inflows

Bitcoin’s recovery is also attributed to the surge in inflows into Bitcoin spot ETFs on Friday, July 5, following two consecutive days of outflows. According to Bitcoin ETF tracker Far side, Spot Bitcoin ETFs saw more than $143 million in inflows on Friday, with Fidelity’s FBTC receiving the most volume at $117 million.

With the recent rally, Bitcoin’s focus is now shifting to economic data and the inflation report, which is set to be released on Thursday. As crypto becomes more integrated into the macroeconomy, the data will have a significant impact on the entire crypto market.

Read more: The History of Bitcoin

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