The Mt. Gox Rehabilitation Trustee has recently announced that the repayments previously anticipated to precipitate a Bitcoin selling spree have been postponed until October 31, 2025.
The extended deadline, initially scheduled for the end of October 2024, provides creditors with additional time to finalize the necessary steps for repayment.
Mt. Gox, an early crypto exchange that collapsed in 2014, owes approximately $9.2 billion in Bitcoin to its creditors.
Market analysts and investors anticipated that the influx of Bitcoin from the reimbursements could result in substantial market pressure when initial repayments commenced in July of this year.
Rachel Lin, co-founder and CEO of SynFutures, stated, “The market anticipates that the majority of Mt. Gox users will dispose of their tokens; however if the selling volume is lower than anticipated, there may be a rebound.”
Bitcoin experienced a 14% decline to a local low of approximately $54,000 then, followed by a rapid ascent to $70,000 by the end of the month.
Bitcoin’s price remains susceptible to other forces, even though this delay eliminates one significant factor that could currently influence the crypto market.
Key forthcoming events include the US presidential election and monetary policy changes, which could either result in price increases or additional sell-offs.
Furthermore, the potential sale of 69,000 seized Silk Road Bitcoins by the United States government, estimated to be worth approximately $4.2 billion, serves as a wild card, further exacerbating the anticipated volatility in the months ahead.
