137,890 BTC payout for Mt Gox creditors; BTC Sell off in advance?

Bitcoin News: The world’s largest cryptocurrency, Bitcoin (BTC), has been on a downward trend for the past 30 days due to uncertainty generated by the US SEC probes and the Silvergate crisis. However, the future new trends do not ring good bells for Bitcoin. According to the reports, the Mt Gox creditors are likely to get their payout in Bitcoin, which could trigger a selling rally.

Incoming Bitcoin Price Dump?

According to reports, a likely Black Swan event could be on the crypto market calendar as Mt Gox creditors are set to receive around 138K Bitcoins. Creditors may receive an “early repayment” on March 10. The cumulative value of Bitcoins to be liquidated is around $3 billion.

Mt. Gox suspended its withdrawals on February 7, 2014. At the time, BTC was trading around $800. However, the Bitcoin price on March 6, 2023 was around an average price of $22,390. Its 24-hour trading volume is up 8% to $14.3 billion. However, Bitcoin has a market cap of around $432 billion. Read more Bitcoin news here…

Will creditors sell BTC after receiving it?

The biggest question here arises, will creditors sell their yet-to-be-received Bitcoins going forward? However, Mt Gox’s balance sheet also contains 143K Bitcoin Cash (BCH) worth approximately $19 million. It is important for the market to keep a close eye on the likely selling pressure to come.

Experts believe that the creditors are going to keep the received Bitcoin instead of selling it. It is important to keep in mind that BTC has already reached the $69K price level in November 2021.

However, another factor to consider is that the two largest creditors are choosing a payout option that does not force a Bitcoin sale. As per reports, they picked up the one-time payment option which would be paid out in September.

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Ashish believes in decentralization and has a keen interest in developing blockchain technology, cryptocurrency ecosystem and NFTs. He aims to create awareness of the growing crypto industry through his writing and analysis. When he’s not writing, he’s playing video games, watching a thriller or doing outdoor sports. Reach me at [email protected]

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.