As creditors of the defunct cryptocurrency exchange Mt. Gox witness updates on their claims, there’s growing anticipation that Bitcoin repayments could soon be initiated. This potential distribution of over $9 billion worth of Bitcoin, stemming from the collapse of Mt. Gox, may significantly influence the cryptocurrency’s market dynamics, according to analysts from K33 Research.
Earlier this week, several creditors reported on Reddit that they have seen updates in their claims, hinting at upcoming cryptocurrency payments. These updates detailed the amount of cryptocurrency and fiat owed to creditors, along with finalized repayment schedules.
Analysts Anders Helseth and Vetle Lunde of K33 Research noted on April 23 that the repayment plan could see creditors receiving Bitcoin as early as next month if it follows the timeline set for fiat currency repayments from March.
Currently, the 127,000 creditors of Mt. Gox are owed more than $9.4 billion in Bitcoin and $72 million in Bitcoin Cash, with an additional $445.8 million also outstanding. Helseth and Lunde warned that the release of these “Mt. Gox coins” could lead to significant market disturbances in the coming weeks.
While the release of Bitcoin does not automatically translate to selling pressure, the market might still be “spooked” by the overhang of 142,000 BTC and 143,000 BCH, as added by the analysts.
The price of Bitcoin is currently just over $66,700, with recent volatility attributed to fluctuating tensions in the Middle East and the Bitcoin halving event on April 20.
Creditors of Mt. Gox have been waiting for over a decade for the repayment of their funds following the exchange’s downfall in February 2014 after it fell victim to a series of hacks that went unnoticed for years.
In January, the trustee of Mt. Gox began contacting creditors to verify their identities and the cryptocurrency exchange accounts to be used for the repayment of owed Bitcoin and Bitcoin Cash.
Meanwhile, reports from last December indicate that some creditors have already received repayments in Japanese yen. Others reported additional fiat transfers in March, according to the K33 report.
Mt. Gox has set a final repayment deadline of October 31, 2024, for basic repayments, early lump sum payments, and interim repayments, although this deadline may be subject to change.
As the situation develops, it’s crucial for investors and market watchers to stay tuned to further updates, which could provide clearer insights into how these large-scale repayments might affect the broader cryptocurrency market.
