bitcoin (btc) has encountered tumultuous price performance in recent months, struggling to surpass previous record levels. However, the situation may get worse as the administrator overseeing the defunct bitcoin exchange Mt. Gox has revealed the final date to go live with bitcoin and bitcoin cash (BCH) refunds to affected customers.
This announcement has raised concerns about the possible contribution of these clients to the current selling pressure in the btc market.
Mt. Gox administrator prepares for redemption
In a recent advertisement On June 24, the trustee and rehabilitation debtor of Mt. Gox revealed that preparations have been made for bitcoin and bitcoin Cash payments as part of the Rehabilitation Plan.
Once these preparations are completed, the administrator will initiate payments to the cryptocurrency exchanges with which the necessary information was exchanged and confirmed. The payment process will reportedly begin in July 2024.
The administrator says it has spent a lot of time ensuring “safe and reliable repayments” to creditors, including implementing technical measures for secure transactions, complying with financial regulations in various jurisdictions, and discuss payment arrangements with cryptocurrency exchanges expected to participate in the process.
Refunds will be made in the order of completion of the exchange and confirmation of the required information with the exchanges involved. Creditors have also been advised to be patient during the payment process.
Sell or hold bitcoin?
It is worth noting that a similar price drop occurred in May when the news about Mt. Gox broke. initiating payments to affected customers. This development caused the price of btc to fall from its high of $70,600 to below the $68,000 level, preventing the cryptocurrency from retesting its all-time high (ATH) of $73,700 in mid-March.
The total amount of bitcoin that will be released remains uncertain, with estimates ranging between 142,000 btc and 200,000 btc. Furthermore, Mt. Gox still controls 143,000 BCH and 69 billion Japanese yen, further complicating the situation.
However, Adam Back, CEO of Blockstream, previously voiced skepticism about possible dumping of btc on the market by Mt. Gox creditors. Back emphasized bitcoin's long-term potential and questioned the logic behind selling at high prices when the market is primed for further growth.
Back further suggested that keeping bitcoin in cold storage would be a more prudent option given the overall favorable market conditions, and the btc price is expected to continue rising in the coming months despite the current price issues.
Established in 2010, Mt. Gox was once the largest bitcoin exchange in the world, handling approximately 70% of everything btc Transactions until it was the victim of an alleged security breach in 2014. The exchange lost 850,000 btc in the hack, resulting in one of the largest bankruptcies in the crypto space.
Ultimately, the payment process for Mt. Gox creditors introduces a new layer of uncertainty to the bitcoin market, contributing to recent price fluctuations.
While concerns remain, industry experts like Adam Back underscore btc's long-term potential, urging creditors to consider holding onto their bitcoin rather than selling it at current levels.
Currently, the largest cryptocurrency on the market is trading at $61,330, a sharp drop of 11% in the last 30 days alone.
Featured image of DALL-E, chart from TradingView.com
