coinedition.com
The crypto community is wary of what may happen to the market in the coming weeks as it has been officially confirmed that Mt. Gox creditors would begin receiving repayments on their Bitcoin investment relinquished nine years ago.
According to reports, the upcoming repayments will start on March 10, unlocking a staggering 137,890 Bitcoin (BTC), over $3 billion at the current market price. The development favors Mt. Gox investors, who have been waiting for over nine years to recoup their investments. However, some crypto enthusiasts believe it could push the crypto market towards another significant bleeding trend.
Mt. Gox creditors may receive repayments from March 10 onward.
— Lookonchain (@lookonchain) March 6, 2023
137,890 $BTC($3B) unlock is coming soon!
Mt. Gox suspended withdrawals on Feb 7, 2014, when the price of $BTC was ~$800.
And the current price of $BTC is $22,408.
Will creditors sell $BTC after receiving it? pic.twitter.com/hEgxGc1uJy
Mt. Gox was once the world’s largest Bitcoin exchange until it filed for bankruptcy in 2014 following the loss of over 850,000 BTC worth $460 million at the time, or $19 billion today. The company suspended withdrawals on February 7, 2014, when the price of BTC was hovering around $800.
With the current price of BTC standing at $22,408, many speculate that the creditors will immediately sell off their BTC holdings once they receive them. It remains to be seen how this influx of Bitcoin will impact the market and whether it will cause significant fluctuations in the crypto world.
An Mt. Gox creditor, Adam Back, who is the CEO of Blockstream, said:
I had pretty much written off the Bitcoin I still had on Mt. Gox in 2014 as a loss, so philosophically anything I get back now is a bonus to the cold store. It has stretched on for many more years than anyone expected.
In the last 24 hours, crypto traders sold and bought over $14 billion worth of Bitcoin, according to CoinMarketCap data.