Analysts at K33 Research suggest that the potential return of over $9 billion worth of Mt. Gox-era Bitcoin in the coming weeks could exert negative price pressure on Bitcoin, possibly unsettling the market.
Recent updates on Reddit indicated that creditors of the failed Mt. Gox crypto exchange have seen updates on their claims, leading many to anticipate imminent crypto payments.
The updates provided details on the amount of cryptocurrency and fiat owed to creditors, as well as completed repayment dates. This suggests that creditors could start receiving Bitcoin returns as early as next month, following a similar repayment schedule for fiat in March.
Over $9.4 billion in Bitcoin and $72 million in Bitcoin Cash are owed to Mt. Gox’s 127,000 creditors, along with $445.8 million in fiat (69 billion Japanese yen).
While the release of Bitcoin may not directly lead to selling pressure, the substantial amount of Bitcoin and Bitcoin Cash still owed to creditors could create an “overhang” in the market, potentially unsettling investors.
Mt. Gox creditors have been awaiting the return of their funds for over a decade since the exchange‘s collapse in February 2014 due to a series of unnoticed hacks. The Mt. Gox trustee has been confirming creditors’ identities and crypto exchange accounts to facilitate repayments since January.
The final repayment deadline for Mt. Gox creditors is set for October 31, 2024, though this could be subject to change. Some creditors have already received Japanese yen repayments, with further fiat transfers reported in March, according to the K33 report.
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