- The release of Bitcoins (BTC) once lost during the Mt. Gox hack may influence the market for the next few months.
- According to official sources, it may take up to three months for Mt. Gox creditors to receive their Bitcoin and Bitcoin Cash tokens.
- Timing for the recovery of these funds will vary based on the chosen exchange platform.
Discover how the redistribution of Mt. Gox Bitcoins might affect the cryptocurrency market over the next three months.
Mt. Gox Begins Bitcoin Reimbursement: A Pivotal Moment for Creditors
Mt. Gox, the cryptocurrency exchange that was hacked in 2014, has initiated the process of reimbursing its users with the lost Bitcoins. The timeline for creditors to receive their funds will differ depending on the exchange they use. For example, the Kraken exchange has been allotted a 90-day period to process payments, whereas Bitstamp has 60 days, BitGo 20 days, and SBI VC Trade along with Bitbank are expected to complete the transactions within 14 days.
Impact on Bitcoin Price and Market Dynamics
The Bitcoin market has already started to feel the pressure from these transactions. Earlier today, the Mt. Gox bankruptcy trustees transferred 47,228.7 Bitcoins—valued at approximately $2.71 billion—into another wallet. This sum will be divided into several smaller transactions for redistribution. Data from Arkham reveals that 1,545 Bitcoins (worth nearly $85 million) have been sent to Bitbank’s wallet.
Potential Market Implications
These massive transfers are generating significant selling pressure on Bitcoin, causing its value to drop by over 7% on a daily basis, with the price falling to $54,000. This event highlights how substantial sums of cryptocurrency moving through various transactions can dramatically influence market conditions, posing challenges for traders and investors alike.
Conclusion
As Mt. Gox creditors gradually reclaim their long-lost Bitcoins, the market will likely experience fluctuations. This redistribution might initially exert downward pressure on Bitcoin’s price, but the long-term effects will need careful monitoring. Investors should brace for volatility and consider the broader implications of such substantial asset transfers on market stability.
