Potential Return of Mt. Gox-era Bitcoin Could Unsettle Market: Analysts at K33 Research
The potential return of over $9 billion worth of Mt. Gox-era Bitcoin in the coming weeks could have a significant impact on the market, according to analysts at K33 Research. Mt. Gox, once one of the largest cryptocurrency exchanges, collapsed in 2014 due to undetected hacks, leaving creditors waiting for their funds for over a decade.
The recent updates from creditors suggest that they may start receiving their Bitcoin as soon as next month. The outstanding debt to Mt. Gox’s 127,000 creditors amounts to over $9.4 billion in Bitcoin, $72 million in Bitcoin Cash, and $445.8 million in Japanese yen. While the release of Bitcoin may not immediately result in selling pressure, the substantial amount of Bitcoin and Bitcoin Cash could unsettle the market.
Bitcoin is currently trading at just over $66,700, with recent volatility attributed to changing tensions in the Middle East and the recent Bitcoin halving. Despite some caution from analysts about a potential price slide following the halving, the overall consensus remains bullish in the long term.
The Mt. Gox creditors have been eagerly awaiting the return of their funds, with some already receiving Japanese yen repayments. The final repayment deadline is currently set for October 31, 2024, but it remains subject to potential changes.
Overall, the market is closely watching the potential return of Mt. Gox-era Bitcoin and its impact on Bitcoin’s price and market dynamics. Stay tuned for more updates as the situation unfolds.
