Bitcoin Price Holds Above $3,600 as Mt. Gox Creditors Seek Exchange Revival
Bitcoin’s long road to recovery hit a speed bump over the weekend, as price action narrowed following an explosive rally on Friday. The leading digital currency continues to hold above $3,600 amid speculation that a group of Mt. Gox creditors is seeking to revive the exchange and repay victims’ bitcoin.
At the time of writing, bitcoin was holding above $3,600 on most major exchanges, though the quote price varied wildly across different platforms. For example, BTC/USD is currently pegged at $3,594 on Forex.com. On Bitfinex, the cryptocurrency is worth $3,698.
The CoinMarketCap data feed, which queries prices on various exchanges, shows an average price of $3,653.80. That’s little changed compared with 24 hours ago.
Bitcoin surged more than 8% on Friday to reach its highest level in three weeks. The sudden move higher pushed prices into overbought territory, based on the hourly Relative Strength Index (RSI). The RSI has since fallen back down to the mid-50 region, reflecting the tepid price movement over the past two days.
Trade volumes have declined sharply over the weekend but remain well above the norm observed in the last half of the bear market. More than $5.8 billion worth of BTC changed hands on virtual exchanges in the last 24 hours. Volumes peaked north of $8 billion on Friday.
Mt. Gox Revival?
Amid a lengthy bankruptcy rehabilitation in Japan, a group of creditors behind Mt. Gox has presented a Civil Rehabilitation plan to bring the cryptocurrency exchange back online. The movement to revive the infamous exchange is known as GoxRising, and its official website states the following:
“GoxRising aspires to a comprehensive, unified Civil Rehabilitation Plan that stands to maximize creditor recovery through quick payout of the estate’s current $1.2 billion in assets. This includes an ongoing effort to recover and distribute the missing bitcoin.”
Efforts to revive the exchange five years after its demise have been met with skepticism since creditors still haven’t been paid back. As Tech Crunch recently pointed out, the court-appointed trustee Nobuaki Kobayashi is still working on a process to compensate the 24,000 victims who filed claims against Mt. Gox. The exchange has in its possession 137,892 bitcoin, 162,106 bitcoin cash and $630 million that was collected from the liquidation of roughly a quarter of its BTC holdings.
GoxRising is expected to present its Civil Rehabilitation plan to Kobayashi by Apr. 22, 2019.
Among cryptocurrency traders, Kobayashi is known as the ‘Tokyo Whale’ for his role in gradually liquidating Mt. Gox’s remaining assets. It has been speculated that his sale of BTC has played a direct role in prolonging the year-long bear market. More on this story: Did a Whale Sink Bitcoin?
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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