The dormant Mt. Gox saga has resurfaced as a series of tokens worth $9.4 billion is set to be distributed to creditors. This move has sparked concern among experts about a potential increase in selling pressure, leading to a drop in Bitcoin’s price.
Mt. Gox, once a prominent Bitcoin exchange, was hacked in 2014, resulting in the loss of over 850,000 BTC. After years of legal battles, a rehabilitation plan was approved in 2021, allowing creditors to recover some of their lost funds. This plan has now become effective, with creditors receiving their allocated portion of the remaining funds.
The news of Mt. Gox’s planned repayments has caused a 4% decline in Bitcoin’s price in the past 24 hours. While there are worries about a potential selloff and further price decrease due to the influx of newly freed coins into the market, former CEO Mark Karpeles confirmed that the tokens being moved are part of the plan to distribute to creditors.
The market is divided into Long-Term Holders (LTHs) and Short-Term Holders (STHs) based on investor holding times. Recent data shows that the number of Bitcoin addresses holding onto coins for more than 5 years has reached a new low, indicating that some long-term investors are taking profits.
Despite concerns about the impact of Mt. Gox repayments on the market, experts believe that the potential selloff might not be as significant compared to other recent large-scale sell-offs. While short-term volatility is expected, long-term implications could lead to increased market stability and liquidity, ultimately boosting investor confidence in Bitcoin’s performance.
