Following a rigorous 10-year process of liquidation, creditors of the Mt. Gox crypto exchange are finally on the verge of reclaiming part of their funds. However, brewing concerns surrounding the substantial amount of Bitcoin (BTC) being released into the open market which can eventually impact BTC’s price appears to be unfounded.
Mt. Gox To Start Bitcoin Payouts
According to bankruptcy reports, the creditors of Mt. Gox will begin receiving Bitcoin payouts on March 10, 2023, but most of it would come in “early lump sum” option. Because of this, the exchange would need to sell Bitcoin in order to generate the necessary amount of cash in order to reimburse the clients.
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Moreover, the report suggests, two of the largest creditors in the reimbursement plan have opted for a fiat payout option which lends further credence to the fact that bitcoin’s price won’t be adversely impacted by the scheduled distribution. For a creditor choosing this route, they will be required to provide some basic KYC/AML information in order to leverage a crypto exchange to receive their reimbursement.
Following the change in the deadline for the selection and registration, the rehabilitation program has also changed the base repayment deadline, early lump-Sum repayment deadline, and intermediate repayment deadline from July 31, 2023 (Japan time) to September 30, 2023 (Japan time). This change brings the dates for all of these deadlines closer together.
Bitcoin (BTC) Price Unfazed?
Despite the fact that the exchange reported losing 850,000 Bitcoins in 2014, the firm has recovered 142,000 BTC, 143,000 in Bitcoin Cash (BCH) and 69 billion Japanese yen ($510 million), which accounts for around 20% of the total attack. This has led many financial experts to assume that the pressure on Bitcoin would be reduced as customers choose alternative modes of payment such as fiat or BCH over Bitcoin.
Nonetheless, it’s still anticipated that the rehabilitation program would result in a marginal increase in the supply of new Bitcoin and historically it has been seen to affect the price of a cryptocurrency to some degree. Although certain price swings in Bitcoin are to be expected, the likelihood of something catastrophic occurring is far lower.
As things stand, the price of Bitcoin (BTC) is currently trading at $$22,418.69 which represents a decrease of 3.74% over the past 24 hours, in contrast to a drop of 2.95% over the last seven days, according to CoinGape’s crypto market tracker.
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