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The post <a href="https://coinpedia.org/news/bitcoin-major-sell-off-coming-as-mt-goxs-9-billion-repayment-begins-today/">Mt.Gox’s $9 Billion Repayment Begins Today! How Will the Crypto Market React?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Bitcoin just clawed its way back to $63,350, a 4% jump that trims some of June’s losses. But can you really call this a comeback? Probably not; as the sentiment towards Bitcoin and the broader crypto markets remains cautious. 
A looming event threatens to throw the crypto market back into turmoil. What is it, and will it sink Bitcoin or create a buying opportunity? Read on to find out. 
<h2 class="wp-block-heading" id="h-concerns-over-mt-gox-s-move">Concerns Over Mt. Gox’s Move </h2> 
Investors are apprehensive about a major liquidation event as the now-defunct exchange Mt. Gox begins distributing recovered tokens this week. 
Mt. Gox, a once-prominent crypto exchange that went bankrupt a decade ago following a significant hack, will start distributing <a href="https://coinpedia.org/news/mtgox-prepares-to-release-142000-btc-and-143000-bch-by-october-31st/">Bitcoin repayments</a> to creditors this week. These creditors, who have waited years for compensation, are set to receive approximately $9 billion worth of Bitcoin at today’s prices 
It’s been a long struggle 
In 2011, Mt. Gox lost approximately 950,000 bitcoins in a hack, a staggering amount given Bitcoin’s then all-time high value of <a href="https://bitcoinmagazine.com/guides/bitcoin-price-history">$32 per BTC</a>. Around 140,000 of those bitcoins were later recovered and are now worth about $9 billion, reflecting a massive increase in value. 
From July to October, Mt. Gox creditors will receive 142,000 bitcoins, valued at around $9 billion at current prices. Although there is an October deadline, JPMorgan analysts believe most repayments will occur in July. 
<h2 class="wp-block-heading" id="h-prepare-for-market-pressure">Prepare for Market Pressure! </h2> 
JPMorgan analysts suggest that some Mt. Gox creditors may sell part of their Bitcoin receivables this month, potentially putting initial pressure on the crypto markets. 
This expectation is supported by a slight decrease in JPMorgan’s Bitcoin futures position indicator based on CME futures, indicating that mainly retail customers, not institutional investors, have been selling off crypto holdings recently. 
<h2 class="wp-block-heading" id="h-what-to-expect-next">What to Expect Next? </h2> 
However, analysts expect a market recovery starting in August, partly due to upcoming cash repayments from another bankrupt crypto exchange, <a href="https://coinpedia.org/news/ftx-bankruptcy-drama-creditors-object-to-cash-payouts-demand-in-kind-reimbursements/">FTX.</a> 
FTX, another bankrupt crypto exchange, will also be repaying its creditors in the coming months, but these repayments will be in cash. Estimated between $14 billion and $16 billion, these repayments are expected shortly after the final approval of FTX’s wind-down plan on October 7. 
These funds could potentially support the crypto markets as crypto-native creditors may reinvest their repayments into digital assets. 
Will Mt. Gox’s repayment cause a crypto fire sale, or is this a buying opportunity? Share your thoughts.

Mt.Gox’s $9 Billion Repayment Begins Today! How Will the Crypto Market React?

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