A concern for Bitcoin investors has taken a back seat in recent weeks and months amid macroeconomic headwinds and crypto-intrinsic contagion effects: the release of recovered BTC from Mount Gox. Originally, users of what was once the largest Bitcoin exchange had to submit their claims before January 10, 2023. Payouts would begin soon after, according to an October statement.
However, the deadline has been pushed back numerous times. And as one document released today by rehab trustee Nobuaki Kobayashi shows, Mt. Gox plaintiffs will have to continue to be patient. The deadline for selection and registration of the repayment method is postponed from January 10, 2023 to March 10, 2023 (Japan time) to “take into account various circumstances, such as the progress of rehabilitation creditors in selection and registration.”
The document goes on to say that after that date, Kobayashi will begin confirming registrations “to make the refund as soon as possible after March 10, 2023.” Following this change, Kobayashi also changed the base repayment term, the early repayment term and the interim repayment term from July 31, 2023 to September 30, 2023.
Is Bitcoin Price Facing a Price Drop?
According to the rehabilitation plan, victims of the Mt. Gox hack to recover a total of 141,686 Bitcoin (BTC), the equivalent of approximately $2.37 billion. Therefore, concerns about a massive price drop have been circulating in the crypto space for quite some time. The question is whether the Mt. Gox Bitcoin Situation Will Push The Price Into Heavy Losses Again.
However, given the facts, this does not seem very likely. There’s a lot of cheating information circulating on Twitter. But the fact is that Bitcoin will not be dumped on the market all at once.
Not all customers of Mt. Gox will likely sell their Bitcoins, although customers can reap huge returns by already involuntarily holding them. In addition, Kobayashi will not release all Bitcoins at once, but the whole process will take several months – from March to the end of September according to the current schedule.
And even if a large chunk of BTC is dumped, it is very likely that the market can easily handle the extra liquidity. The impact is likely to be small, as daily trading volume would still be enough to absorb sales even at the historic low of around $15 billion.
Bitcoin price today
At the time of writing, BTC was trading at USD 16,739 and struggling with support at USD 16,740. Ideally, Bitcoin price should remain above USD 16,600 to avoid a decline below USD 16,000 and maintain upside momentum. If successful, an upward move to USD 17,000 could be possible, where the next key resistance awaits.
Featured image of Zipmex, chart from TradingView.com