Factors Why Mt.Gox’s Impending $3 Billion Bitcoin Settlement May Not Cause a Sell-off

The post Factors Why Mt.Gox’s Impending $3 Billion Bitcoin Settlement May Not Cause a Sell-off appeared first on Coinpedia Fintech News

In the previous week alone, Bitcoin declined by more than 5% as traders anticipated potential effects on the cryptocurrency market from the Mt.Gox exchange’s impending creditor payouts. The fact that the Mt. Gox liquidator has chosen to finish paying creditors by September of this year is one factor weighing down on Bitcoin.

If creditors of the Mt.Gox exchange hack from 2014 receive their entire settlement of about $3 billion in bitcoin, they could cause a market shock, according to cryptocurrency analysts. The sum would be around 142,000 Bitcoin, 143,000 BCH, and 69 billion JPY. 

However, one analyst believed otherwise. Anonymous analyst Crypto Busy took to his Twitter handle and shared a series of tweets explaining how the payout might not cause a bearish scenario. 

Early adopters, hack, and more

He claims that many early adopters still support cryptocurrency and will choose to be compensated in #BTC so they may keep it. And they won’t sell their Bitcoins right away, especially given that it has already risen to an all-time high of $69,000.

The analyst also said that it’s not the first time 141,000 BTC was sold in a day. He added, “Another factor is that two of the LARGEST Mt.Gox creditors picked a payout option that won’t force a #Bitcoin sell-off. They picked lump sum payment option to be paid out in September. & sources tell that litigations could net higher payouts but may take another 5 to 9 yrs.”

When 850,000 Bitcoin were stolen by hackers in 2014, creditors of the Mt Gox exchange have been waiting almost ten years to obtain their reimbursement.

Talking about the hack, he added, “Another fact is that Mt. Gox lost 850,000 BTC in a hack, and they where not able to get back the full stolen Bitcoins. So they will not actually paying out that amount to creditors. Instead, Mt.Gox only has 141,686 $BTC, 142,846 $BCH, and 69 Billion Yen.”