Wednesday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

24 April 2024

K33 Research analysts suggest that the return of over $9 billion worth of Mt. Gox-era Bitcoin in the coming weeks could negatively impact Bitcoin prices and unsettle the market.

According to some creditors of the now-defunct Mt. Gox crypto exchange, there have been recent updates on their claims, indicating that cryptocurrency payments might be on the horizon.

These updates provided details on the cryptocurrency and fiat amounts owed to creditors, as well as projected repayment dates.

Assuming a similar repayment schedule for fiat and cryptocurrency, analysts Anders Helseth and Vetle Lunde of K33 Research anticipate that creditors could start receiving Bitcoin as early as next month.

In an April 23 report, they highlighted that $9.4 billion in Bitcoin and $72 million in Bitcoin Cash (BCH) are owed to Mt. Gox’s 127,000 creditors, alongside approximately $445.8 million (69 billion Japanese yen).

“Mt. Gox coins could become a significant negative factor for Bitcoin prices in the upcoming weeks,” Helseth and Lunde commented.

Although the release of Bitcoin may not directly translate to immediate selling pressure, the potential influx of 142,000 BTC and 143,000 BCH could still cause market instability.

At present, Bitcoin is trading just above $66,700, though recent market volatility has been attributed to geopolitical tensions and the Bitcoin halving event on April 20.

In related news, Mt. Gox’s trustee has updated the Bitcoin and fiat repayment timetable.

For over a decade, Mt. Gox creditors have been waiting for the return of their funds after the exchange’s collapse in February 2014, a result of persistent hacks that went undetected for years.

In January, the Mt. Gox trustee contacted creditors to verify their identity and confirm their crypto exchange accounts for receiving owed Bitcoin and Bitcoin Cash.

Recent reports indicated that some creditors had started receiving Japanese yen repayments in December last year, with additional fiat transfers reported in March.

Mt. Gox has set a final repayment deadline of October 31, 2024, for base, early lump-sum, and intermediate repayments, although this timeline remains subject to change.