Bitrabo Editorial
Bitcoin has seen a rocky road in its price performance recently, struggling to reach previous record highs. The trustee responsible for overseeing the now-defunct Bitcoin exchange Mt. Gox has declared an official date for starting repayments in Bitcoin and Bitcoin Cash (BCH) to affected customers.
This announcement has sparked worries about the potential impact of these repayments on the selling pressure in the Bitcoin market.
Mt. Gox Trustee Getting Ready for Repayments
In a recent announcement on June 24, the trustee and rehabilitation debtor of Mt. Gox disclosed that preparations for Bitcoin and Bitcoin Cash repayments, as part of the Rehabilitation Plan, have been underway.
These preparations are now finalized, and the repayments will begin in July 2024 to the cryptocurrency exchanges that have exchanged and confirmed the necessary information.
The trustee emphasizes the dedication to ensuring secure and reliable repayments to creditors by implementing technical measures, adhering to financial regulations in various jurisdictions, and negotiating repayment terms with the involved cryptocurrency exchanges.
Repayments will be made based on the exchange completion order and confirmation of required information. Creditors are advised to remain patient throughout the repayment process.
Deciding Whether to Sell or Hold Bitcoin
Similar price fluctuations occurred in May when Mt. Gox’s repayment news surfaced, causing Bitcoin’s price to drop from $70,600 to below $68,000, preventing a retest of the all-time high of $73,700.
The exact amount of Bitcoin to be released remains uncertain, with estimates between 142,000 to 200,000 BTC. Additionally, Mt. Gox still holds 143,000 BCH and 69 billion Japanese yen, adding to the complexity.
Despite concerns about potential market selling, experts like Adam Back advocate for holding onto Bitcoin for long-term growth. Back questions the rationale behind selling at high prices when the market shows promise for further expansion.
Considering the positive market conditions, storing Bitcoin in cold wallets is seen as a prudent choice, especially with expectations of continued Bitcoin price increments in the upcoming months.
Once the world’s foremost Bitcoin exchange in 2010, Mt. Gox suffered an alleged security breach in 2014, resulting in the loss of 850,000 BTC and a significant bankruptcy.
The repayment process for Mt. Gox creditors adds a new layer of uncertainty to the Bitcoin market, influencing recent price fluctuations. Despite ongoing concerns, experts emphasize Bitcoin’s enduring potential and advise creditors to hold onto their assets instead of selling presently.
Currently, the primary cryptocurrency is trading at $61,330, marking an 11% decline over the past 30 days.
Featured image from DALL-E, chart from TradingView.com