Why is Bitcoin price down today?

On July 24, Bitcoin (BTC) dropped over $1,400 within two hours, pushing its 24-hour losses to 2.1%. Mt. Gox’s ongoing repayments to creditors may have played a major role in this decline.

BTC/USD hourly chart. Source: TradingView

Let’s have a closer look at the factors driving Bitcoin price lower today.

Mt. Gox begins 140K Bitcoin reimbursement

Today’s Bitcoin price drop appears against the backdrop of the commencement of Mt. Gox’s reimbursement of its creditors with over 140,000 BTC, worth approximately $8.5 billion.

Notably, according to a Telegram group of Mt. Gox creditors, creditors of the defunct crypto exchange began receiving Bitcoin and Bitcoin Cash (BCH) repayments on the Kraken crypto exchange on July 23.

These repayments come after the Japan-based crypto exchange moved over 47,500 Bitcoin, worth almost $3.2 billion, to two unknown addresses on July 23.

Simultaneously, the US government moved 58.74 BTC, worth nearly $4 million, to Coinbase Prime, raising speculation about its purpose.

According to Arkham Intelligence data, Mt. Gox’s BTC holdings now stand at around 85,234 BTC, worth $5.70 billion.

Source: Arkham Intelligence

Following the defunct exchange’s repayments statement on July 5, it established plans to “promptly” carry out repayments to creditors that seem well underway.

Data showing 47,600 BTC leaving the Mt. Gox address. Source: Arkham Intelligence

The Mt. Gox wallet labeled “Mt. Gox: Cold Wallet (1Jbez)” sent 48,641 BTC worth around $3 billion to Kraken on July 16 to disseminate to creditors.

The exchange expected creditors to retrieve their funds within one to two weeks.

Mt. Gox’s creditors have been awaiting reimbursement for over a decade, during which BTC’s price has surged by more than 10,000%. The fear of this additional Bitcoin supply witnessing selloffs immediately upon entering circulation has exerted downward pressure on the market.