Anticipated Return of $9B Mt. Gox-era Bitcoin May Spur Market Anxiety

The
potential
return
of
over
$9
billion
worth
of
Mt.
Gox-era
Bitcoin
in
the
coming
weeks
could
unsettle
the
market
and
exert
negative
price
pressure
on
Bitcoin,
according
to
analysts
at
K33
Research.
Earlier
this
week,
some
creditors
of
the
now-defunct
Mt.
Gox
crypto
exchange
shared
updates
on
their
claims,
providing
information
about
the
amount
of
cryptocurrency
and
fiat
owed
to
them,
as
well
as
completed
repayment
dates.

Mt.
Gox
Creditors
Could
Receive
Payments
Next
Month

The
new
updates
suggest
that
creditors
might
start
receiving
their
Bitcoin
as
soon
as
next
month,
as
noted
by
K33
Research
analysts
Anders
Helseth
and
Vetle
Lunde
in
an
April
23
market
note.
The
outstanding
debt
to
Mt.
Gox’s
127,000
creditors
amounts
to
over
$9.4
billion
in
Bitcoin,
$72
million
in
Bitcoin
Cash,
and
$445.8
million
in
fiat
currency
(69
billion
Japanese
yen).

Helseth
and
Lunde
caution
that
the
release
of
Bitcoin
may
not
necessarily
result
in
immediate
selling
pressure.
However,
they
emphasize
that
the
substantial “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
attributed
to
changing
tensions
in
the
Middle
East
and
the
Bitcoin
halving
that
occurred
on
April
20.

Mt.
Gox’s
Troubled
History

The
Mt.
Gox
creditors
have
been
eagerly
awaiting
the
return
of
their
funds
for
over
a
decade
since
the
exchange’s
collapse
in
February
2014
due
to
a
series
of
undetected
hacks.
In
January,
the
Mt.
Gox
trustee
initiated
contact
with
creditors
to
verify
their
identities
and
the
crypto
exchange
accounts
that
would
be
used
for
repaying
the
owed
Bitcoin
and
Bitcoin
Cash.
Some
creditors
had
already
begun
receiving
Japanese
yen
repayments
by
December
of
last
year,
and
further
fiat
transfers
were
reported
in
March.

While
the
final
repayment
deadline
for
base
repayments,
early
lump-sum
repayments,
and
intermediate
repayments
is
currently
set
for
October
31,
2024,
it
remains
subject
to
potential
changes.

Potential
Impact
on
Bitcoin’s
Price

The
return
of
Mt.
Gox
coins
has
the
potential
to
significantly
impact
Bitcoin’s
price
in
the
coming
weeks.
The
sheer
quantity
of
142,000
BTC
and
143,000
BCH
involved
could
unsettle
the
market,
creating
what
analysts
refer
to
as
an “overhang”.
This
overhang
could
potentially
put
negative
price
pressure
on
Bitcoin,
as
investors
may
anticipate
a
flood
of
Bitcoin
hitting
the
market.

Conclusion

The
anticipated
return
of
over
$9
billion
worth
of
Mt.
Gox-era
Bitcoin
could
potentially
unsettle
the
market
and
negatively
impact
Bitcoin’s
price.
Creditors
of
the
failed
Mt.
Gox
crypto
exchange
have
reported
updates
on
their
claims,
suggesting
that
Bitcoin
repayments
could
begin
as
early
as
next
month.
The
sheer
quantity
of
Bitcoin
involved
could
create
an “overhang”
and
potentially
impact
Bitcoin’s
price
in
the
coming
weeks.
Traders
and
investors
will
be
closely
watching
the
market
for
any
signs
of
increased
volatility
or
selling
pressure.

Image
source:
Shutterstock

.
.
.

Tags