Mt. Gox rumors panic Bitcoin Twitter as BTC price returns below $20K

[Markuri33]

Claims that 137,000 BTC are about to be offloaded on the open market are met with intense suspicion as BTC price volatility returns.Bitcoin (BTC) failed to keep $20,000 support on Aug. 27 as fears over a sell-off by users of defunct exchange Mt. Gox added to price pressures.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Mt. Gox rumors dismissed as "typical crypto"
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it headed to new six-week lows, reaching $19,766 on Bitstamp.

Thin weekend liquidity appeared to exacerbate already jittery markets, which reacted badly to unconfirmed rumors that Mt. Gox funds were due for release to creditors on Aug. 28.

Claims varied widely at the time of writing, with some believing that a tranche of 137,000 BTC was set for release in one go. Others said that funds would be sent piecemeal, but that payouts would nonetheless begin this weekend.

A point of consensus came in the form of creditors allegedly wanting to sell BTC owed to them, this having been out of reach since 2014, when BTC/USD traded at under $500. The unrealized 40X returns, they feared, would prove too enticing for creditors to become willing hodlers.more