Analysts at K33 Research warn that the upcoming release of over $9 billion in Bitcoin from the Mt. Gox era could scare the market and potentially cause a drop in Bitcoin’s price.
This week on Reddit, some Mt. Gox crypto exchange creditors reportedly noticed progress on their claims, leading several of them to believe that cryptocurrency payouts might be imminent.
The modifications disclosed the amount of both cryptocurrencies and fiat currencies that creditors were due, along with the finalized repayment schedules.
If the latest developments hold true, creditors could potentially receive their Bitcoin back by the end of next month based on a comparable repayment timeline for fiat currency, according to K33 Research analysts Helseth and Lunde in their note dated April 23rd.
Approximately 127,000 creditors of Mt. Gox are entitled to over $9.4 billion in Bitcoin and an additional $72 million in Bitcoin Cash (BCH), as well as approximately 69 billion Japanese yen, which is equivalent to $445.8 million.
According to Helseth and Lunde, Mt. Gox coins might have a significant impact on driving down prices in the coming weeks.
The absence of a Bitcoin release leading to selling pressure is a given. However, the presence of approximately 142,000 Bitcoins and 143,000 Bitcoin Cash in reserve may cause market unease.
The price of Bitcoin now hovers around $66,700, with fluctuations caused by geopolitical turmoil in the Middle East and the Bitcoin network’s halving on April 20.
For over a decade, Mt. Gox creditors have been left in limbo, eagerly awaiting the restoration of their stolen funds following the exchange’s downfall in February 2014. This tragic event was precipitated by a succession of unchecked hacks that went undetected for years.
Starting in January, the trustee for Mt. Gox initiated contact with creditors to verify their identities and the specific crypto exchange accounts they would use to receive their recompensed Bitcoin and Bitcoin Cash.
In December of the previous year, certain creditors began receiving repayments in Japanese yen as indicated by reports that emerged. Additionally, according to the K33 report, more creditors received fiat transfers during March.
Mt. Gox sets the last date for making base, early lump-sum, and intermediate payments as October 31, 2024. However, this deadline may be adjustable.
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2024-04-24 05:23