Bitcoin (BTC) is facing a possible new selloff in the near future as users of the now-defunct Mt. Gox prepare to get their coins back.
In new correspondence dated July 6, attorney Nobuaki Kobayashi, the designated lead attorney in the Mt. Gox remediation process, confirmed that he was “arranging reimbursements” to account holders.
Cash, Bitcoin or Bitcoin Cash?
More than eight years after the Mt. Gox hack, it seems that those who lost money are about to receive BTC.
The event has been long in coming, as have concerns about its impact on the market. Bitcoin’s price at the time is nowhere near the current $20,900, commenters noted, leading to suspicions that takers could instantly sell large amounts of BTC on the market, dragging the price down with them.
In the official correspondence, Kobayashi did not give an exact date for the start of the refunds.
“The administrator of the rehabilitation fund is currently preparing to make repayments in accordance with the approved plan whose confirmation order of the Tokyo District Court was made final and binding on November 16, 2021 (the “Rehabilitation Plan”)” , it reads.
Debtors now have the option of receiving outstanding funds as “early lump sum repayment or not,” it continues, as well as receiving all or part of them in BTC or the beleaguered altcoin; BitcoinCash (BCH).
“The term for the election and registration will be set by the administrator of the rehabilitation fund with the authorization of the Court,” adds the correspondence.
The rehabilitation plan was initially approved in 2018 and confirmed in October 2021. Of the initial 850,000 BTC lost due to the decline of Mt. Gox, only about 150,000 BTC have been recovered.
Potential black swans still to eat:
1. Mt Gox victims finally get their bitcoin released
2. Tether collapse unable to redeem
3. Total stock market crash
4.Taiwan invasion
5. Ukraine escalation
6. Satoshi alive and moves some $btc from genesis wallet
7. Schiff buys bitcoin— EloniusMunk (@EloniusMunk) June 18, 2022
In response, Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, advised traders to set price alarms for when payments begin.
“Everything is quiet for now”, tweetedwhile another Twitter user listed Mt. Gox at the top of the list of “black swan” events that could affect the price of BTC.
Celsius Loan Payoff Boosts BTC
The BTC/USD pair was not affected by the outlook for MT payments. Gox during the day.
Instead, news that cryptocurrency lending platform Celsius had completed its own repayments in the form of a $44 million loan to MakerDAO sent the market hitting nine-day highs near $21,000.
As we told you before, the volatility was already expected to affect the price of Bitcoin, which had been consolidating in an increasingly narrow range for several days, according to data from Cointelegraph Markets Pro and TradingView.
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