Bitcoin (BTC) has seen tumultuous price action over the past few months, struggling to surpass previous all-time highs. However, the situation could get worse as the administrator overseeing the defunct Bitcoin exchange, Mt. Gox, revealed the final date for Bitcoin’s launch and Bitcoin Cash (BCH) to affected customers.
This announcement has raised concerns that these clients may be contributing to continued selling pressure in the BTC market.
Mt. Gox administrator prepares for takeover
In a recent announcement On June 24, the Mt. Gox trustee and rehabilitation debtor revealed that preparations for Bitcoin and Bitcoin Cash repayments were underway under the rehabilitation plan.
Once these preparations are complete, the trustee will initiate redemptions to the cryptocurrency exchanges with which the necessary information has been exchanged and confirmed. The reimbursement process is expected to begin in July 2024.
The trustee claims to have spent a lot of time ensuring “safe and reliable repayments” to creditors, in particular by implementing technical measures to secure transactions, complying with financial settlement in various jurisdictions, and discuss repayment terms with the cryptocurrency exchanges that should be involved in the process.
Refunds will be issued in the order in which the exchange is completed and the required information is confirmed with the relevant exchanges. Creditors have also been advised to be patient during the repayment process.
Sell or hold Bitcoin?
It is worth noting that a similar price drop occurred in May when news of Mount Gox broke. initiate reimbursements to the customers concerned. This development caused the price of BTC to fall from its high of $70,600 to below $68,000, preventing the cryptocurrency from retesting its all-time high (ATH) of $73,700 in mid-March.
The total amount of Bitcoin to be released remains uncertain, with estimates ranging from 142,000 BTC to 200,000 BTC. Additionally, Mt. Gox still controls 143,000 BCH and 69 billion Japanese yen, further complicating the situation.
However, Adam Back, CEO of Blockstream, previously Express skepticism about the potential dumping of BTC on the market by Mt. Gox creditors. Back highlighted Bitcoin’s long-term potential and questioned the rationale for selling at high prices when the market is poised for further growth.
Back further suggested that keeping Bitcoin in cold storage would be a more prudent choice given the overall favorable market conditions, with the price of BTC expected to continue to rise in the coming months despite the current price woes.
Founded in 2010, Mt. Gox was once the world’s largest Bitcoin exchange, handling about 70% of all trading. BTC Operations until it fell victim to an alleged security breach in 2014. The exchange lost 850,000 BTC in the hack, leading to one of the largest bankruptcies in the crypto space.
Ultimately, the process of paying off Mt. Gox creditors introduces a new layer of uncertainty to the Bitcoin market, contributing to recent price fluctuations.
Even as concerns persist, industry experts like Adam Back highlight BTC’s long-term potential, urging creditors to consider holding their Bitcoin rather than selling it at current levels.
Currently, the largest cryptocurrency on the market is trading at $61,330, a steep decline of 11% in the last 30 days alone.
Featured image of DALL-E, chart by TradingView.com
