- Cryptocurrency exchange Mt. Gox, facing financial difficulties, is likely to start making Bitcoin payments to some creditors soon, according to Reddit sources.
- In a post on Reddit, Yang also warned the crypto community that Mt. Gox’s Bitcoin distribution could impact the market in the next two months.
- According to TokenUnlocks data, Mt. Gox still holds over 137,800 BTC, valued at $5.5 billion.
Reports of Mt. Gox starting Bitcoin payments to some creditors have raised concerns in the Bitcoin market.
Mt. Gox Development Raises Concerns in the Bitcoin Market
Cryptocurrency exchange Mt. Gox, facing financial difficulties, is likely to start making Bitcoin payments to some creditors soon, according to Reddit sources. Mt. Gox extended payments until October 2024, delaying them for another year, but some creditors who have already provided the necessary information are expected to receive BTC payments in the next two months.
Creditors have received emails from the Mt. Gox Rehabilitation Trustee Committee confirming the ownership of their accounts and identification verifications with the cryptocurrency exchange or custodian they entered as the payment address for BTC/BCH.
Mindao Yang, the founder of decentralized stablecoin protocol dForce Network, also warned the crypto community in a post on X that Mt. Gox’s Bitcoin distribution could impact the market in the next two months. Yang stated that it is expected for Mt. Gox creditors to lock up significant amounts of BTC, larger than 200,000 BTC, and this adds to the pricing of 600,000 lost BTC and GBTC after the approval of spot Bitcoin ETF.
“The Bitcoin halving will reduce the annual supply by 160,000 coins. Interesting supply dynamics will unfold in the coming months,” said Mindao Yang. To receive payments in BTC/BCH, creditors’ accounts must be active. If an account is disabled or frozen in the future, individuals may not receive payments in BTC/BCH.
In December 2023, creditors reported receiving compensation in Japanese yen to their PayPal accounts. Payments are ongoing, and many individuals are also receiving payments in U.S. dollars. According to TokenUnlocks data, Mt. Gox still holds over 137,800 BTC, valued at $5.5 billion. The total BTC amount is 162,105 BTC, valued at $6.5 billion.
Will There Be Selling Pressure?
Experts have different views on Bitcoin payments made by the Mt. Gox Trustee Committee. Some believe that payments will take months throughout the year. However, others claim that a lump-sum payment will be made to creditors at once. Mindao Yang stated, “Of course, the selling pressure should be quite limited. After all, many debts have been sold over the years, and prices have already been reflected in the market.”
The price of BTC has dropped by 3% in the last 24 hours and is currently trading at $39,070. The 24-hour low and high values are $38,850 and $41,242, respectively. Additionally, the trading volume has increased by 120% in the last 24 hours, indicating interest among traders.
