BTC and other cryptocurrencies experienced fluctuations due to long-standing fears resurfacing during a bullish market. Had this occurred in November 2022, BTC might have dipped below $10,000. Fortunately, MtGox refunds are being issued amidst the market’s peak.
What is the Latest with MtGox Refunds?
Kraken exchange announced after the daily candle close that refunds had been initiated. The MtGox trustee sent thousands of BTC to five selected exchanges, fulfilling the long-awaited refunds. Investors who had their assets frozen due to the MtGox hack now have the opportunity to sell these assets, which were once bought at $200, at $66,000.
Notably, on-chain data indicates that not all recipients are selling; some are transferring their assets to cold wallets. There’s a potential positive impact, as some of the proceeds might be reinvested into cryptocurrencies, particularly altcoins, which could stimulate a market rise. Conversely, FTX claims will soon be refunded in cash, which could drive funds into exchanges instead of directly into the crypto market.
Why Did Kraken Make this Announcement?
Around 12 hours ago, Kraken CEO Dave Ripley confirmed the completed refunds and shared a historical photo of the founding CEO with the trustee. This announcement marked a significant milestone for Kraken, which was chosen nearly a decade ago to assist in the investigation and refund process.
Key Takeaways for Investors
– BTC assets from the MtGox event have been refunded, presenting selling opportunities at high current market prices.
– Some investors are transferring assets to cold wallets, indicating long-term holding strategies.
– Proceeds from the refunds may flow back into the crypto market, potentially benefiting altcoins.
– Upcoming FTX claim refunds in cash could inject liquidity into exchanges differently from the MtGox scenario.
Kraken expressed gratitude to the trustee for safeguarding funds and highlighted the importance of maintaining their mission towards a more financially free, secure, and inclusive world. This milestone underscores Kraken’s significant role and commitment in the cryptocurrency industry.