The post Empire Newsletter: The suspects behind this weekend’s crash appeared on BitcoinEthereumNews.com.

Today, enjoy the Empire newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Empire newsletter. Gox Watch If the price of bitcoin were a murder mystery, there would be several key suspects. It was macro factors that crashed crypto, some analysts might say.  Renewed recession fears, the potential AI bubble and absentee rate cuts from the Fed have all bruised the stock market. Why wouldn’t bitcoin also reel from the same effects? Mt. Gox could be another potential culprit. As many as 20,600 creditors had been waiting 10 years to have their bitcoin returned, during which time its price had gone from under $500 to $58,000 when repayments began in May. About $5.77 billion in bitcoin has been sent to participating crypto exchanges to date, valued at the time of transfer.  Any creditor who had $1,000 in bitcoin when Mt. Gox went belly up would now have over $110,000 based on distributions so far. Figures for how much remains differ from screener to screener, but based on my calculations, 51,957.7 BTC — worth $3 billion — is left from an initial 141,690 BTC ($8.15 billion at current prices). All the remaining bitcoin should be sent out sometime over the next two months or so. For scale, the government of the German state of Saxony in total sent $2.92 billion directly to exchanges and other OTC desks, which on the surface appeared to dent the price of bitcoin, either directly or indirectly.  Saxony’s net outflows are marked in purple on the chart below. Notice those purple areas coincide with a bitcoin dip, and prices picked up directly after they were done. Mt. Gox distributions are those big spikes downward in red while ETF flows are the lighter colors in the background Coincidentally, bitcoin ETFs — particularly…

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Filed under: News - @ August 7, 2024 2:18 pm