Mt. Gox Repayment Delayed, Bitcoin Relief Rally Ahead ?
Mt. Gox pushes its Bitcoin repayment to April 6
BTC holders continue to hold on to the hopes of a potential relief rally
Mt. Gox creditors, who were eagerly waiting to receive nearly 138,000 Bitcoins as an early repayment on March 10, will now have to wait until April 6. The repayment process is expected to continue until October 30, 2023.
Mt. Gox’s Delay Impacts Bitcoin
The delay in Mt. Gox’s repayment has negatively impacted Bitcoin’s trading price, which has fallen by 2.03% in the last 24 hours and is currently trading at $21,672. This news has come as a blow to the world’s largest cryptocurrency, Bitcoin which is already under pressure.
However, though the Mt.Gox repayment is delayed, March 10 will have a major impact on Bitcoin’s further price action due to the release of unemployment data. If the unemployment data comes out negative, Bitcoin might claim some gains ahead.
Mt. Gox’s trouble dates back to 2014 when the largest crypto exchange at the time lost nearly 800,000 BTC. Since then, the exchange’s creditors, considered early Bitcoin believers, have been fighting to regain their lost assets.
Mt. Gox’s trustee, Nobuaki Kobayashi, had initially set March 10 as the deadline for creditors to register their preferred mode of payment, which has now been extended to April 6. The repayment process will then begin on April 6 and continue until October 30.
Initially, Kraken was chosen by Mt. Gox’s trustee to repay its creditors, but now BitGo and Bitspamp have been offered the opportunity. Mt. Gox still holds 142,000 BTC and equal amounts in BCH, Bitcoin SV, and BTG.
Expected Sell-Off
The delay in repayment is expected to spark a major sell-off in the crypto market, potentially pulling Bitcoin and other major cryptocurrencies back to lower levels. The unemployment rate, which is set to be released on March 10, will also play a role in deciding the future movement of Bitcoin.
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