Short Term Bitcoin Price Pain

Mt. Gox Repayments Won’t Be as Bad for Bitcoin as You Think

  • Short Term Bitcoin Price Pain

  • Mt. Gox Repayments Won’t Be as Bad for Bitcoin as You Think

  • Massive News from the Telco Industry

  • And more…

Market Data Prices as of 5:50am ET

Price (USD)

Change (24h)

Change (YTD)

Bitcoin (BTC)

$61,398

+0.28%

+45.88%

Ethereum (ETH)

$3,381

+1.80%

+47.64%

This Update is Brought to You By Swan Bitcoin
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BREAKING: Mt. Gox Repayments Won’t Be as Bad for Bitcoin as You Think

Bitcoin enthusiasts, this week brought the news that Mt. Gox would finally begin customer repayments starting in July this year.

Understandably, the market didn’t respond well…

Investors feared that 141,000 Bitcoin might flood the market. 😬

However, it might not be as dire as it seems. (Here’s a dose of hopium for you)

Alex Thorn, head of research at Galaxy Digital, provided some reassuring insights:

Mt. Gox lost around 940k BTC (valued at $424 million at the time) and recovered 15% (141,868 BTC or ~$63.9 million at the time), which is now worth $9 billion.

While a 15% recovery, it represents a 140x gain for creditors in USD terms.

To get this "early" payout, creditors accepted a ~10% discount on their repayment.

Thorn estimates that ~75% of creditors chose this option, leaving 95k BTC to be paid out.

Of this amount, approximately 20k BTC is owed to claims funds and 10k BTC to Bitcoinica BK, leaving around 65k BTC for individual creditors.

Thus, 65k BTC is significantly less than the initially feared 141,868 BTC.

bitcoin price

Not so fast, Bitcoin bears.

Thorn also outlines three reasons why he believes these creditors are more diamond-handed than the market expects:

  1. Creditors are skewed toward long-term holders - these are seriously early adopters.

  2. Creditors resisted years of aggressive offers by claims funds - they prefer their coins back over USD.

  3. Capital gains impact would be HUGE - these creditors are up 140x.

Considering all this, Thorn predicts that the number of coins set to be dumped on the market is much lower than reports suggest.

However, keep in mind these are only predictions…

No one knows for sure how much Bitcoin these creditors will actually sell.

SHORT TERM BITCOIN PRICE PAIN💥

With the market reacting negatively to the Mt. Gox news and the German government selling off Bitcoin, it’s been a challenging time for the crypto world.

However, there’s another significant factor that’s been dragging down the price of Bitcoin.

And that’s miner capitulation.

On-chain analyst Willy Woo recently highlighted why there’s a bit more gloom for Bitcoin in the short term.

The Bitcoin halving was a monumental event for the cryptocurrency.

It halved the block reward, meaning the rate at which new Bitcoin enters circulation was reduced.

Consequently, the revenue for miners was also cut in half.

Post-halving, unprofitable miners often sell off large amounts of Bitcoin to pay for hardware upgrades and regain profitability.

Unfortunately, the weakest miners are forced to shut down, liquidating their holdings as they can no longer sustain operations.

The chart above is quite complex, but all you need to know is that the circled areas indicate periods of intense selling from Bitcoin miners, also known as capitulation.

Looking at miner balances, we can see they’ve decreased by over 30k BTC since June.

This is the fastest pace of miner selling we’ve seen in over 12 months.

bitcoin price

But, this isn’t unusual.

It happens every cycle.

Woo explains that once intense miner capitulation ends, we usually see a significant rally:

“I know it sucks, but BTC is not going to break all-time highs until more pain and boredom play out. On the bright side, miners are capitulating and when that is through, it nearly always ends in a huge rally.”

Willy Woo On the flip side, these periods of miner capitulation are often excellent times to buy… 💰

And he’s not the only one… Mathematician and Wall Street Veteran Fred Kreuger, also weighed in this week on the slump in Bitcoin price representing a massive opportunity to top up reserves…

The best crypto app to secure your tokens: Ledger

A crypto wallet is a physical device, designed to enhance the security of your private keys by securely storing them offline.

These wallets physically store your private keys within a chip inside the device itself.

The beauty of using a crypto wallet is the security it provides to your private keys.

The big idea behind crypto wallets is the isolation of your private keys from your easy-to-hack smartphone or computer – basically anything that can expose your private keys

MASSIVE NEWS FROM THE TELCO INDUSTRY

BREAKING: Telecom Giant and T-Mobile Parent Deutsche Telekom Plans to Mine Bitcoin

Here's some significant news for you…

Telecommunication giant Deutsche Telekom, the parent company of T-Mobile,

announced that it has been operating a Bitcoin node since 2023.

Speaking at Bitcoin Prague, Dirk Röder, Head of Web3 Infrastructure at T-Mobile, shared the following:

“Since 2023, we [have been] running a Bitcoin node and we are running Bitcoin Lightning nodes as well.” Dirk Roder

But that’s not all…

Dirk Röder concluded his presentation with the following:

“With a heart full of… pride, I would like to let you in on a little secret; we will engage in digital monetary photosynthesis soon.”

If you're like us, you're probably wondering what "digital monetary photosynthesis" even means. 🤨

The host had the same question and asked Dirk to clarify:

"Is T-Mobile mining Bitcoin?"

Dirk replied, "We will."

That's monumental.

T-Mobile, one of the largest US telecom companies with a market cap of approximately $208 billion, has now decided to enter the Bitcoin mining arena...

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