The $9 billion Mt. Expected return of Bitcoin in the Gox era may increase market anxiety
According to analysts at K33 Research, more than $9 billion worth of Mt. A potential return of Gox-era Bitcoin could unsettle markets and put negative price pressure on Bitcoin, it said. Earlier this week, some creditors of the now-defunct Mt. provided.
Mt. Gox creditors could receive payments next month
As K33 Research analysts Anders Helseth and Vetle Lunde noted in an April 23 market note, the new update suggests creditors could start receiving Bitcoin starting next month. Mt. Gox’s outstanding debt to 127,000 creditors amounts to $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million (69 billion Japanese Yen) in fiat currency.
Helseth and Lunde warn that a Bitcoin launch may not necessarily lead to immediate selling pressure. However, they emphasize that the significant “overhang” of 142,000 BTC and 143,000 BCH could “spook the market.” Bitcoin is currently trading at just over $66,700, with recent volatility due to changing tensions in the Middle East and the Bitcoin halving that occurred on April 20.
The difficult history of Mt. Gox
Mt. Gox creditors have been desperately awaiting the return of their funds for more than a decade, since a series of undetected hacks led to the exchange’s collapse in February 2014. Last January, Mt. Gox trustees began contacting creditors to verify their identities and the cryptocurrency exchange accounts that would be used to repay the Bitcoin and Bitcoin Cash owed. Some creditors already began receiving repayments in Japanese yen in December last year, and additional fiat currency transfers were reported in March.
Currently, the final repayment deadline for basic repayment, early lump sum repayment, and early repayment is set to October 31, 2024, but may change.
Potential Impact on Bitcoin Price
The return of the Mt. Gox coin is likely to have a significant impact on the price of Bitcoin in the coming weeks. The sheer volume of 142,000 BTC and 143,000 BCH involved could unsettle markets, creating what analysts call an “overhang.” This bump could potentially put negative price pressure on Bitcoin as investors may expect a flood of Bitcoin to hit the market.
conclusion
The more than $9 billion Mt. Bitcoin’s expected return in the Gox era could unsettle the market and have a negative impact on the Bitcoin price. Creditors of the failed Mt. Gox cryptocurrency exchange have reported an update on their claims, suggesting Bitcoin repayments could begin as early as next month. The sheer volume of Bitcoin involved could create a “bulge” that could potentially impact the price of Bitcoin in the coming weeks. Traders and investors will be watching the markets closely for signs of increased volatility or selling pressure.
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