Will Mt. Gox Bitcoin Dump Affect Crypto Market? Here’s what the expert has to say – Coinpedia – Fintech & Cryptocurreny News Media
Tthe price of bitcoin passed $25k on Monday, although BTC’s price on the same day continued to decline, reaching a low of $24,000. At the same time, there is an interesting development in the market.
A suspected 2014 attack on Japanese cryptocurrency exchange Mt. Gox resulted in the loss of around 850,000 Bitcoins. According to reports, some of the stolen property will begin to be given to creditors. However, this event has raised serious questions about the stability of Bitcoin’s pricing.
According to sources, declared Mt. Gox trustee in charge of the case that they were getting ready to refund some bitcoin organizations
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Followers: 0 Show profile . In order to implement the “repair plans” that were agreed in 2021, this will be done. The dealers believe that this can increase the market’s selling price.
Even an “early lump sum repayment” has been proposed to creditors by the firm’s liquidator in an attempt to cover the debt. The creditors can now either accept or reject this offer. Experts warn that some creditors may reject this offer, hoping that additional money can be recovered in the future.
What is the process?
Creditors must choose the early repayment option to fuel R&D around the Bitcoin price. This will result in payment of BTC. The open market’s order books may be affected by this.
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The creditors will have two choices to recoup the losses in the meantime. The first step is to receive payment in local currency. This will be a mix of either Yen, BCH or Bitcoin. Allowing the executor to convert the digital assets into cash would be the other option. However, all creditors must choose the early redemption option for the put option to be supported. Mt. Gox, however, has not been able to recover all 850,000 Bitcoins. About 140,000 of the stolen BTCs were recovered.
140,000 Bitcoins, according to the data, represents barely 8% of the total daily trading volume. According to the statistics, this is insignificant compared to the market. This action has a very small chance of affecting Bitcoin values.
