Mt. Gox, a Japan based cryptocurrency exchange lost around 850,000 Bitcoins in an alleged hack back in 2014. It has been reported that the creditors will begin to receive some of the stolen assets. However, this event has raised vital concerns regarding the price stability of Bitcoin.
Creditor to choose Bitcoin’s fate?
As per reports, the Mt. Gox trustee supervising the case announced that they were preparing to make some Bitcoin repayments. This will be done in order to fulfill the ‘rehabilitation plans’ approved in 2021. The traders believe that this can potentially surge the selling price in the market.
The firm’s trustee has even offered the creditors an ‘early lump sum repayment’ in order to settle the debts. The creditors now can either accept or decline this offer. However, expert suggests that some creditors may decline this offer in hope that in the future some more funds will be recovered.
In order to power Bitcoin price FUD, creditors will need to select the early repayment option. This will mean that BTC will become payable. This will potentially hit the order books of the open market.
Meanwhile, to reimburse the losses, creditors will have two options to choose from. First will be getting paid in the native currency. This will be the combination of Bitcoin, BCH, or Yen). The second option will be to let the trustee liquidate the digital assets into cash.
How much it can impact BTC’s price?
However, to support the sell option, all creditors will need to opt for the early redemption option. Meanwhile, Mt. Gox has not been able to recover the full 850K Bitcoins. It recovered around 140K of the stolen BTCs.
As per the data, 140K Bitcoins will only make only 8% of the cumulative daily exchange volume. This is statistically minimal in comparison to the market. This move holds were very low potential to impact Bitcoin prices.
Meanwhile, Bitcoin went on to breach the $25k price level on Monday. BTC went on to drop down the $24 price level on the same day. Bitcoin is trading at an average price of $24,020, at the press time.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
