Mt. Gox Creditors Receive Bitcoin (BTC) Repayments, Raising Concerns About Market Impact

A decade after the collapse of Mt. Gox, creditors have finally started receiving their Bitcoin (BTC) repayments, facilitated by the US-based exchange Kraken.

Ten years after the Mt. Gox exchange collapsed, leaving creditors in the lurch, the US-based exchange Kraken has finally begun facilitating the distribution of Bitcoin (BTC) repayments to those affected by the incident.

This development has sparked concerns regarding the potential impact on the cryptocurrency market, particularly with the possibility of an influx of BTC increasing selling pressure and driving down prices.

However, data from Arkham Intelligence reveals that Mt. Gox still holds over 80,000 BTC, currently valued at approximately $5.37 billion, which could still affect the market if released in large quantities.

Interestingly, many of these creditors are choosing to hold onto their Bitcoin, reflecting a positive long-term outlook for the cryptocurrency.

According to Arkham’s records, there has been a significant reduction in Mt. Gox’s Bitcoin reserves, which dropped from 142,000 BTC to 80,000 BTC over a few weeks, indicating the large-scale distribution to creditors.

While some creditors have opted to sell their Bitcoin, contributing to market volatility, others are retaining their assets, showing confidence in Bitcoin’s future potential.

The market initially reacted strongly to the news, with Bitcoin’s price dipping below $54,000, influenced by both the anticipated selloffs and other market events, such as the sale of seized Bitcoins by the German State of Saxony. However, the situation has since stabilized.

Crucially, the ongoing repayments have been managed well, preventing any major price drops. For instance, recent transactions to Bitstamp haven’t significantly increased Kraken’s trading volumes, suggesting controlled selling pressure.

In fact, Bitcoin’s price has even risen by 5% to $67,085 over the last 24 hours. As the repayment process continues, the market will be keeping a close watch on Bitcoin's response.

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