According to Cointelegraph: Previously defunct crypto exchange, Mt. Gox, has announced the pending delay of its Bitcoin (BTC) bankruptcy repayments by a year, causing Bitcoin bulls to seemingly step back and with the cryptocurrency failing to find upward traction. Despite this move averting the return of extra Bitcoin supply to the market, it has not reignited bullish sentiment.
In 2014, the once-dominant Tokyo-based exchange suffered a staggering loss of 850,000 BTC (approx. $23 billion) due to a hack. Mt. Gox had planned to distribute the recovered 142,000 BTC, 143,000 Bitcoin Cash (BCH), and 69 billion Japanese yen to its creditors by Oct. 31 this year.
UBS analysts and other industry experts had warned that these repayments could lead to a sudden increase in Bitcoin's active supply, resulting in price depreciation assuming creditors would rush to liquidate their holdings. With the crypto market's depth nosediving since the FTX collapse, bulky sell orders could exert a disproportionate negative impact on prices. However, the repayment deadline has now been revamped to Oct. 31, 2024, easing concerns of an immediate supply overhang.
Yet, Bitcoin price seems unaffected by this decision, trading 0.4% lower at approximately $27,000. Crypto hedge fund QCP Capital indicates the delay rumor might have prompted the recent Bitcoin price bounce. However, for prices to surge higher, a fresh bullish catalyst is urgently needed. As of now, the macro environment remains uncertain, and the launch of a U.S.-based spot exchange-traded fund (ETF) is still months away.
The announcement by rehab trustee Nobuaki Kobayashi formally confirms the extension of the Mt. Gox repayment deadline by an additional year, further stirring market uncertainty.
