Selling Bitcoin in Fear of Mount Gox Dump? Here’s what the expert suggests
Mt. Gox, a Japanese based cryptocurrency exchange lost around 850,000 Bitcoins in an alleged hack back in 2014. It has been reported that the creditors will start receiving some of the stolen assets. However, this event has raised important concerns regarding the price stability of Bitcoin.
Creditor to choose Bitcoin’s fate?
According to reports, Mt. Gox trustee overseeing the matter that they were preparing to make some Bitcoin payments. This will be done to fulfill the ‘rehabilitation plans’ approved in 2021. Traders believe that this could potentially increase the selling price in the market.
The firm’s liquidator has even offered creditors an “early lump sum repayment” to settle the debt. The creditors can now either accept or reject this offer. But, expert suggests that some creditors may decline this offer in the hope that some more funds will be recovered in the future.
To drive Bitcoin price FUD, creditors must choose the early repayment option. This will mean that BTC will become payable. This will potentially affect the order books of the open market.
In the meantime, to replace the losses, creditors will have two options to choose from. First will be to get paid in the original currency. This will be the combination of Bitcoin, BCH or Yen). The other option would be to let the executor liquidate the digital assets into cash.
How much could it affect BTC’s price?
However, to support the put option, all creditors will have to choose the early redemption option. Meanwhile, Mt. Gox was able to recover the entire 850K Bitcoins. It recovered about 140,000 of the stolen BTCs.
According to the data, 140K Bitcoins will only represent 8% of the cumulative daily exchange volume. This is statistically minimal compared to the market. These moves had very low potential to affect Bitcoin prices.
Meanwhile, Bitcoin continued to break the $25k price level on Monday. BTC continued to fall to the $24 price level on the same day. Bitcoin is trading at an average price of $24,020 at press time.
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.
