Mt. Gox, the defunct Japanese cryptocurrency exchange, will begin repaying creditors in Bitcoin ($BTC ) and Bitcoin Cash ($BCH ) starting in July 2024. Approximately 142,000 BTC and 143,000 BCH, valued at around $9 billion, will be distributed to about 127,000 creditors who have awaited compensation since the exchange's collapse in 2014.
The announcement has stirred concerns about potential selling pressure on the market, as creditors might sell their received Bitcoin, possibly driving prices down. A previous large movement of Bitcoin by Mt. Gox in May 2024 led to a temporary market dip. Following the news of the repayments, Bitcoin prices have declined, falling below $62,500.
Some analysts believe that the market, having matured, may handle the influx without significant long-term impact. Additionally, many creditors might opt to hold onto their Bitcoin due to its significant appreciation since the 2014 hack.
For investors, this situation could present a buying opportunity if prices dip due to selling pressure. A potential recovery rally in altcoins of 15-30% might follow if the market stabilizes post-volatility. As always, it's crucial to stay informed and have a well-defined strategy in navigating such events in the cryptocurrency market.
