Bitcoin Price Bounces on Mt. Gox Repayment Rumors
The recent price increase of Bitcoin, rising by more than 5% in the past week, is largely attributed to rumors of a delay in Mt. Gox repayments until 2024, according to QCP Capital, a trading firm. Despite this, the firm still maintains its target of $22,000 for Bitcoin by October.
Potential Delay in Mt. Gox Repayments
Mt. Gox, which collapsed in 2014, set a deadline for creditors to provide their repayment information by April with the intention of completing repayments by October 31. However, the deadline may be subject to change as stated by the Mt. Gox trustee. The collapsed exchange is expected to distribute an unknown portion of the 142,000 BTC ($3.9 billion), 143,000 BCH ($31.3 million), and 69 billion Japanese yen ($467 million) it holds.
QCP Capital’s Latest Market Update
In its latest market update, QCP Capital stated that “a large reason we’re seeing for this bounce are rumors of a Mt. Gox delay to 2024.” The trading firm believes that many investors went short on Bitcoin due to the upcoming expected date for repayments and that an official announcement of the delay will lead to a short squeeze similar to the SEC vs. GBTC judgment last month.
Short-Lived Bounce Expected
Despite the recent price bounce, QCP Capital predicts that it will be short-lived. The firm expects any spike in Bitcoin’s price to fade quickly as global risks continue to put pressure on the crypto markets into Q4. Therefore, they maintain their target of $22,000 for Bitcoin by October.
Hot Take: Bitcoin’s Price Boost on Mt. Gox Rumors
The recent increase in Bitcoin’s price is largely attributed to rumors of a delay in Mt. Gox repayments until 2024. QCP Capital believes that many investors went short on Bitcoin due to the expected date for repayments, and an official announcement of the delay could trigger a short squeeze. However, the trading firm expects the price bounce to be short-lived, with global risks weighing on the crypto markets in the coming months.
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