Mount Gox Commences Creditor Repayments After a Decade
The long-awaited commencement of repayments to creditors of the defunct cryptocurrency exchange Mount Gox has finally arrived. After ten years of bankruptcy, the Mount Gox Rehabilitation Trustee has started distributing Bitcoin (BTC) and Bitcoin Cash (BCH) payments to some creditors through designated crypto exchanges linked with the repayment plan.
Mount Gox Repayment Process
- The trustee will continue repaying other creditors once certain conditions are met.
- These conditions include confirming the validity of registered accounts, finalizing discussions with designated crypto exchanges, and ensuring the safe transfer of repayments.
- Eligible creditors are urged to remain patient as the estate aims to complete all repayments before the October 31 deadline.
As the distribution process begins, Bitcoin struggles to maintain its position above $54,000, experiencing a significant drop of approximately 5% in the last 24 hours. Concurrently, Bitcoin Cash has also seen a decline of 12%, hovering around $300 at the time of writing.
Potential Impact on Bitcoin Price
- Concerns have arisen about selling pressure from the Mount Gox distributions potentially prompting a substantial correction in the price of Bitcoin.
- Despite reassurances from on-chain experts that the estate’s Bitcoin movements should not cause immediate selling pressure, the current trend on Bitcoin charts suggests otherwise.
Potential Further Plunge of Bitcoin?
Recently, Bitcoin briefly dropped below the $54,000 mark as the Mount Gox estate transferred $2.7 billion worth of Bitcoin to a new address in preparation for repayments. Similar occurrences in the past have led to price declines, such as when Bitcoin dropped 4% from $70,000 in May after Mount Gox initiated similar movements.
- There is a looming risk of Bitcoin falling to $50,000 due to potential sell-offs by Mount Gox creditors upon receiving their assets.
- Moreover, the ongoing sale of Bitcoin by the German government, which has already sold around 9,641 BTC worth over $539 million in the last 15 days, could further accelerate any potential decline.
Despite the current downward trajectory of Bitcoin, market liquidations have surpassed $660 million, with expectations of further increase in the near future. Analysts, however, remain optimistic about another rally for the leading cryptocurrency, citing the ongoing bullish sentiment in the market.
Hot Take: Brace for Impact
As the long-anticipated creditor repayments from Mount Gox finally kick off, the cryptocurrency market braces for potential impact amid concerns of Bitcoin price corrections:
- Mount Gox initiates distributions to creditors through designated crypto exchanges.
- Bitcoin and Bitcoin Cash experience price fluctuations as distributions commence.
- Potential sell-offs by creditors and the German government’s Bitcoin sales add to downward pressure.
- Market liquidations exceed $660 million, signaling possible volatility ahead.
- Despite short-term uncertainties, analysts foresee a bullish rally in the near future.
Stay tuned for updates on how these developments may shape the cryptocurrency landscape in the coming days. Prepare for market fluctuations and opportunities as the industry navigates through this period of transition.
Sources:
By
By
By
By