A Date For The Mt. Gox Repayment Is Set, How Will This Affect Bitcoin?

Crypto News
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The Mt. Gox Bitcoin payments have been long awaited. The process took several years and finally, in 2021, there is now a story in sight for all those affected. Attorney Nobuaki Kobayashi has been appointed as a Rehabilitation Trustee and will be responsible for the repayment process. This is expected to happen in a few months and a concrete date has now been set when the repayments can start.

Save the date of September

Since the announcement of the Mt. Gox bitcoin repayment plan in July 2021, affected users have been waiting for when the repayment would start. So far, claims for the funds are being processed and there are approximately 140,000 BTC that are expected to be fully repaid.

The most recent announcement regarding the refund has come with a definite date for when it will finally start. The start date was set for September 15, 2022, starting at Japan time. If that date sounds familiar, here’s a little reminder that this is the same date that was set for the completion of the Ethereum merge.

Given the start date, the redemption is expected to end before the end of the year. More importantly, the notice states that the Repayment Trustee Nobuaki Kobayashi would no longer receive claim requests on this date, so the attorney can focus on repayment in its entirety.

Bitcoin price chart from TradingView.com

“To ensure secure refunds and avoid unexpected drawbacks, we ask that you refrain from transferring any rehabilitation claims during the assignment, etc. Restriction Reference Period,” the message reads.

What does this mean for Bitcoin?

Since the announcement of Mt. Gox bitcoin, there have been speculations about what it could mean for the price of the digital asset. Initially, rumors circulated around 140,000 BTC being dumped into the market at the same time, causing panic among investors. However, these rumors have since been brushed aside.

Instead, the Mt. Gox bitcoin refunds take place over a period of time, with only a portion going into circulation at a time. This will ensure that there is a much smaller impact of the BTC coming into the market and would not lower the price of BTC.

One thing that is important to keep in mind is the fact that the refunds start on the same day as the Ethereum Merge. It is rumored that the merger is already a sell-out, and if any part of the BTC goes to market, it would negatively impact the market.

Finally, BTC is expected to tank further before hitting the bottom. So all these events seem to be working towards an inevitable end where BTC is finally back below its previous cycle peak of $19,000.

Featured image from The Indian Express, chart from TradingView.com

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