Market analysts at K33 Research are cautioning that the potential return of over $9 billion worth of Bitcoin from the Mt. Gox era could have a negative impact on the cryptocurrency's price.
Market analysts at K33 Research are cautioning that the potential return of over $9 billion worth of Bitcoin from the Mt. Gox era could have a negative impact on the cryptocurrency's price. According to Anders Helseth and Vetle Lunde, researchers at K33, the recent updates provided to Mt. Gox creditors, revealing the amount of cryptocurrency and fiat owed to them along with repayment dates, suggest that Bitcoin repayments could commence as early as next month.
Mt. Gox's collapse in February 2014, following a series of undetected hacks, left 127,000 creditors waiting for the return of their funds. The exchange owes them over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million in fiat currency (69 billion Japanese yen). While the release of Bitcoin may not directly result in selling pressure, the sheer quantity of 142,000 BTC and 143,000 BCH involved could unsettle the market, creating what analysts refer to as an "overhang."
The analysts highlight that the return of Mt. Gox coins have the potential to significantly impact Bitcoin's price in the coming weeks. The current price of Bitcoin hovers above $66,700, but recent volatility has been attributed to various factors such as geopolitical tensions in the Middle East and the Bitcoin halving that took place on April 20.
The Mt. Gox trustees began contacting creditors in January to verify their identities and the crypto exchange accounts used for repayment. Some creditors have already received Japanese yen repayments, while others reported receiving additional fiat transfers in March. The final repayment deadline for base, lump-sum, and intermediate repayments is currently set for October 31, 2024, although this date may be subject to change.
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