Mt Gox, the once-popular cryptocurrency exchange that filed for bankruptcy ten years ago, has finally started repaying its creditors. The Mt Gox Rehabilitation Trustee announced that bitcoin and Bitcoin Cash payments were distributed to some creditors on July 5 through designated crypto exchanges. The trustee will continue repaying other creditors once certain conditions are met, including confirming account validity and ensuring the safety of the repayment process. The estate aims to complete all repayments before the October 31 deadline.
As the repayments from Mt Gox begin, the cryptocurrency market is experiencing some turbulence. Bitcoin has struggled to stay above $54,000, while Bitcoin Cash has dropped by 12% in the past 24 hours. There were concerns that the selling pressure from the Mt Gox distributions could lead to a significant correction in the price of bitcoin. However, on-chain experts believe that these distributions are not a cause for alarm and will not immediately impact the price of the cryptocurrency.
Despite reassurances from experts, there is still fear that bitcoin could drop further as Mt Gox continues its repayments. The estate recently transferred $2.7 billion worth of bitcoin to a new address in preparation for the repayments, causing the price of bitcoin to briefly fall below $54,000. Analysts warn that the price of bitcoin could drop to $50,000 as Mt Gox creditors potentially sell off their assets upon receiving them. Furthermore, the German government has been selling off large amounts of bitcoin, which could also contribute to a further decline in price.
With the price of bitcoin heading southward and the threat of more liquidations in the market, there is uncertainty about the future of the cryptocurrency. Despite these challenges, analysts remain optimistic that bitcoin will eventually rally again, as the market is still in a bull season. It remains to be seen how the repayments from Mt Gox will impact the price of bitcoin in the coming days and weeks, but for now, the cryptocurrency market is facing some volatility as a result of these developments.
