For nearly as long as Bitcoin has been trading, its existence has been a thorn in the side of crypto investors everywhere. And from today new investors in crypto may soon find out why veterans cringe when they hear the name: Mt. Gox.

Find out why the infamous original crypto exchange could continue to be the bane of every Bitcoin bull run.

What is Mt. Gox and what does it mean for Bitcoin?

Mt. Gox is short for “Magic: The Gathering Online eXchange”, according to Wikipedia. But when the creator Jed McCaleb became interested in Bitcoin, he turned it into a cryptocurrency exchange.

Without it, Bitcoin adoption may not have evolved as things have historically seen. Then why are crypto investors suddenly so afraid of the long-defunct platform?

Related reading | Analyst: Bitcoin Parabolic Trend Is “Close To Outage”

The word spreads, from Bloomberg’s Matt Leising, that Coinlab has reached a deal with Mt. Gox creditors in which original investors can claim up to 90% of the original lost BTC. The deal is subject to creditor approval, but it could result in some of the original 140,000 BTC hitting the market.

Much of what has driven the recent Bitcoin rally has been a lack of coins on exchanges, but a sudden influx of sellers with tens of thousands of profit each mint the tide could turn towards the overall bull trend again.

mt gox bitcoin

The effects of Mt. Gox over the years | Source: BTCUSD on TradingView.com

How the early exchange crushed every major crypto rally

While the existence of the early exchange was vital to Bitcoin’s initial growth, it has been nothing but an eyesore ever since. Mt. Gox has been responsible for almost every major spike in cryptocurrency history, dating back to 2013.

The first took place when the crypto market was so popular, the stock market stopped trading to enforce a cooling period from the market. Cool it did, with a week long candle from high to low with a full return of 80%.

mt gox bitcoin

The next big peak occurred when troubles at Mt. Gox came to a head. The platform had problems leading up to 2014, but it was February 2014 when recordings were stopped.

The full details of the hack triggered the first big one bear market in the leading cryptocurrency based on market capitalization. After recovering for three years, Bitcoin finally shattered all expectations and emerged as a household name topping $ 20,000 in 2017.

That wasn’t until later in 2018 after subsequent sales blockchain data disclosed that it was the trustee responsible for keeping the Mt. Gox BTC sells in the market to cover costs and recoup funds.

Related reading | The striking similarities between the Bitcoin peak of 2017 and now

The trustee began moving Bitcoin on December 18, the exact peak of the last bull market. The rest is history.

Bitcoin is back, and even doubled the 2017 peak. Will these early crypto investors continue to hold much higher prices? The highest price the cryptocurrency traded at in 2013 and 2014 was less than $ 1,200. That means that even at the current price of $ 35,000 and an allotment of 90%, they are still over $ 30,000 in profit per mint.

Even if every investor of around 100,000 BTC has only sold half, that’s 50,000 BTC suddenly flooding the market. The curator sold much less than that in 2017, and it eventually cost the cryptocurrency back to $ 3,200. What damage will this do to the market this time?

Featured image from Pixabay, Charts from TradingView.com





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