Will Mt. Gox Payouts Hurt Bitcoin's Price?
Bitcoin

Will Mt. Gox Payouts Hurt Bitcoin's Price?

2m
Created 11mo ago, last updated 11mo ago

While only 142,000 BTC ended up being recovered, a huge surge in its value means those owed money are still in line for a substantial windfall.

Will Mt. Gox Payouts Hurt Bitcoin's Price?

Listen to the CoinMarketRecap podcast on Apple Podcasts, Spotify and Google Podcasts

Nine years after an audacious hack, Mt. Gox's victims are about to start getting some of their Bitcoin back.

A whopping 850,000 BTC was stolen back in 2014 — bringing the shutters down on what was the world's biggest crypto exchange at the time.

While only 142,000 BTC ended up being recovered, a huge surge in its value means those owed money are still in line for a substantial windfall.

But a big question that's been lingering over the imminent payouts is this: Will the unlocking of all this Bitcoin lead to mass sell-offs and drag down prices?

That's unlikely, according to UBS. In a new report, its analysts drilled down into the rehabilitation plan that has been presented to creditors of the doomed exchange.

They noted that creditors have the option to be compensated in the form of crypto or cash — and have the right to hold off on receiving a payout now in hope of a greater sum later on.

It's also worth pointing out that many of those who had invested in Bitcoin back then were early adopters and firm believers in the digital asset's potential, making them less likely to sell.

One potential dark cloud looming on the horizon concerns the fact that the active supply of BTC could be about to dramatically increase — and this could contribute to weakness in prices.

2 people liked this article