For a few weeks now, the crypto market has really been in the red. And it could have something to do with Mt. Gox. Indeed, after a hack in 2014 that led to the company’s bankruptcy, the platform has started to refund its customers in Bitcoin and Bitcoin Cash. This news generated strong selling pressure on the market.

Mt. Gox finally refunds its customers

In February 2014, the Mt. Gox platform had to announce its bankruptcy after a hack that caused the loss of over 80,000 BTC, or $50 million at the time, and immobilized 140,000 BTC belonging to its customers.

In terms of value, this loss now represents almost $5 billion. Whereas the money owed by the platform to its customers is now worth 8.5 billion for 140,000 BTC.

In December 2023, the company began refunding some of its customers using fiat currencies. MT. Gox announced a few weeks later that it would be refunding its customers in Bitcoin (BTC) and Bitcoin Cash (BCH). I think the process started earlier this week.

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But it was a blessing in disguise. 10 years on, the repayment of its funds is excellent news for the platform’s former customers. They will all receive their BTC at a 1000% premium, given that Bitcoin is currently valued at $61,000. At the time of the company’s bankruptcy, Bitcoin was valued at $600. They will also receive their BCH (Bitcoin Cash), now valued at $400.

However, these refunds sent the market tumbling. These customers, logically wishing to take their profits, began selling their BTC, creating massive selling pressure on the BTC price. As a result, shortly after the announcement, the price of BTC fell sharply.

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This is not an absolute certainty, as other parameters come into play on the crypto market.

According to Ryan Lee, an analyst with The Block newspaper, the announcement was a classic “sell the news” scenario, which refers to heavy selling by investors after a major announcement.

Indeed, in the financial markets, current events and, in particular, expected announcements, such as the repayment of Mt. Gox’s debts or a decision on interest rates by the US Central Bank, are always used as a pretext to justify an upward or downward movement.