Mt. Gox Ready To Issue IDR 42 Trillion For Creditors, Bitcoin Price Threatened To Drop Again

Mt. Gox is ready to spend IDR 42 trillion on creditors, Bitcoin prices are in danger of falling again (Photo; Doc. Cointimes)

JAKARTA - The price of Bitcoin (BTC) is currently in medium-term uncertainty, especially after signals from the no-operating crypto exchange, Mt. Gox, will soon distribute around US$2.8 billion (around Rp42 trillion) to its creditors. Mt. Gox, which was once the largest crypto exchange in the world before going bankrupt in 2014, still holds more than 44,800 BTC which will be distributed according to their rehabilitation plan.

According to Coinspeaker information, recently, the Bitcoin address was linked to Mt. Gox made several transactions indicating that payments to creditors might be continued soon. Previously, the distribution of funds from Mt. Gox often sparked negative sentiment in the crypto market. For example, in the previous distribution, the price of Bitcoin fell drastically from more than 64,000 US Dollars to around 53,000 US Dollars in just two weeks.

This situation has many investors worried that the subsequent distribution of funds could trigger massive sell-offs, especially as Bitcoin is currently facing a strong resistance zone of between US$64,000 and US$65.000. Bitcoin's price decline was also driven by the slow accumulation of BTC by large investors, such as the issuer of Exchange Trade Fund (ETF) Bitcoin in the United States.

However, there are several factors that can offset the negative impact of Mt. Gox's distribution of funds. One of them is the potential distribution of funds from FTX and Alameda Research, which is estimated to reach around 16 billion US Dollars (around Rp242 trillion) in stablecoins. These funds are expected to increase purchasing pressure in the crypto market.

From historical data, the fourth quarter following the occurrence of Bitcoin halving usually tends to be bullish, where many investors anticipate a significant price increase. In addition, the trend of rising gold prices which hit a record high recently is considered a similar signal for Bitcoin, which many consider "digital ice".

In the midst of this bullish potential, digital asset adoption still faces major challenges, especially related to security concerns. The large number of crypto exchange hacking cases is a major barrier to widespread adoption. One of the most recent examples is the hack that befell WazirX, a crypto exchange from India, which lost more than 230 million US Dollars (approximately IDR 3.4 trillion) in cyber attacks. Most of these funds have reportedly been laundered through Tornado Cash, a crypto mixer service.

Indonesia is also inseparable from cyber attacks, with the Indodax crypto exchange losing more than 20 million US Dollars (around Rp303 billion) from user funds due to system attacks. These incidents highlight security flaws in centralized exchanges and raise concerns for users.