Bitcoin faces the "black swan" of Mt. Gox as the trustee gets ready to
Bitcoin faces the "black swan" of Mt.
Gox as the trustee gets ready to release 150K BTC
As creditors of Mt. Gox decide how much money they want to receive in cash, Bitcoin, and Bitcoin Cash, the possibility of a rumoured 150,000 BTC flooding the market becomes serious.
In the near future, a fresh selling danger will arise as Mt. Gox users are ready to reclaim their BTC. Nobuaki Kobayashi, an attorney chosen as trustee in the Mt. Gox rehabilitation process, acknowledged that he was "preparing to make reimbursements" to account holders in a new letter dated July 6.
Cash, Bitcoin or Bitcoin Cash?
It looks that those who lost money are about to receive BTC more than eight years after Mt. Gox fell.
Both the incident and worries about its effects on the market have been anticipated for a while. Commentators have remarked that the price of Bitcoin at the time was a small portion of the current $20,900, which raised concerns that recipients may rapidly sell significant quantities of BTC on the market, pushing prices.
Kobayashi didn't specify a particular start date for the repayments in the formal email. The confirmation order of the Tokyo District Court (the "Court") was rendered permanent and binding on November 16, 2021 (the "Rehabilitation Plan"), and it states that the Rehabilitation Trustee is presently prepared to make repayments (the "Repayments") in line with that plan.
It continues that those who are owing money now have the option of receiving it as a "Early Lump-Sum Repayment or not," as well as receiving all or part of it in Bitcoin or the troubled cryptocurrency Bitcoin Cash (BCH).
The correspondence further states that the Rehabilitation Trustee will establish the registration and choice deadlines with the Court's approval. The rehabilitation strategy received first approval in 2018 and was officially confirmed in October 2021. Only a reported 150,000 BTC have been recovered out of the initial 850,000 BTC lost due to Mt. Gox's fall.
On-chain analytics expert Ki Young Ju responded by advising traders to set price alarms for the start of the payouts.
He tweeted, "It's still quiet for now," while another user listed Mt. Gox as the most likely "black swan" incident that may affect BTC.
Repayment of the Celsius loan increases BTC.
The possibility of the payouts that day did not faze BTC/USD.
Instead, the market rose to nine-day highs of close to $21,000 on news that cryptocurrency lending platform Celsius had finished repayments of its own in the form of a $44 million loan to MakerDAO.
Data from CoinGabbar indicated that volatility was already anticipated to affect Bitcoin, which has been stabilizingl+ in an increasingly constrained range for several days.
