itcoin experienced a drop in value falling to $54,000 ( check live chart here ) marking it as one of the losses since the FTX collapse. The latest data shows that short term holders faced a loss of $587 million due to panic selling triggered by the news about Mt. Goxs repayment plan.
This incident highlights the risks faced by investors during market uncertainties. During that period investors who held onto Bitcoin for a time were found to have 2.5 million BTC at a loss, which posed a higher risk of market corrections than the Mt. Gox news itself.
Steady Long Term Holders
In contrast to the short term holders, long term investors showed resilience but this had minimal impact on the selling pressure. Those who had been holding Bitcoin for more than two years only recorded $94 million in losses. This unwavering stance from investors reflects their belief in Bitcoins future beyond market fluctuations or news events.
Sell Off Triggered by Mt. Gox Repayment Plan
The significant $814 million sell off was mainly fueled by panic among short term HODLers following the announcement of Mt. Goxs bankruptcy trustee unveiling a plan to repay creditors with $2.7 billion in Bitcoin and cash. This repayment plan originated from the 2014 hacking incident of the cryptocurrency exchange resulting in the loss of 850,000 BTC. The disclosure reignited concerns about an influx of Bitcoin into circulation. Moving forward the influence of holders will play a role in maintaining stability during turbulent market phases.
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