After all, the Bitcoin (BTC) price cannot be affected by Mt. Gox payments
After a rigorous 10-year process of liquidation, creditors of Mt. Gox crypto exchange is finally on the verge of reclaiming part of its funds. However, concerns about the significant amount of Bitcoin (BTC) being released into the open market, which could ultimately affect BTC’s price, appear to be unfounded.
Mt. Gox To start Bitcoin payouts
According to bankruptcy reports, the creditors of Mt. Gox will begin accepting Bitcoin payouts on March 10, 2023, but most will come in “early lump sums.” Because of this, the exchange will have to sell Bitcoin to generate the necessary amount of cash to refund customers.
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Furthermore, the report suggests, two of the largest creditors in the repayment plan have opted for a fiat payout option, lending further confidence to the fact that bitcoin’s price will not be adversely affected by the planned distribution. For a creditor choosing this route, they will be required to provide some basic KYC/AML information to leverage a crypto exchange to receive the refund.
Following the change in the deadline for the selection and registration, the rehabilitation program has also changed the basic repayment deadline, early lump sum payment deadline and intermediate repayment deadline from July 31, 2023 (Japan time) to September 30, 2023 (Japan time). This change brings the dates of all these deadlines closer together.
Bitcoin (BTC) Price Unperturbed?
Despite the exchange reporting losing 850,000 Bitcoins in 2014, the firm has recovered 142,000 BTC, 143,000 in Bitcoin Cash (BCH) and 69 billion Japanese yen ($510 million), which is about 20% of the total attack. This has led many financial experts to assume that the pressure on Bitcoin will be reduced as customers choose alternative payment methods such as fiat or BCH over Bitcoin.
Nevertheless, the rehabilitation program is still expected to result in a marginal increase in the supply of new Bitcoin, and historically it has been seen to affect the price of a cryptocurrency to some extent. Although certain price fluctuations in Bitcoin are to be expected, the probability of something catastrophic occurring is far lower.
As things stand, the price of Bitcoin (BTC) is currently trading at $$22,418.69, representing a decrease of 3.74% in the last 24 hours, as opposed to a fall of 2.95% in the last seven days, according to CoinGape’s crypto market tracker.
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