Mt. Gox exchange released documents yesterday (5th) indicating that it has commenced scheduled repayments to creditors through various cryptocurrency exchanges. Due to different exchanges used by creditors to receive repayments, the entire repayment cycle could last up to approximately 3 months.
(Previous summary:
140,000 Bitcoin dump incoming? Clarifying ten questions about Mt. Gox repayment fog
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(Background supplement:
Don’t panic! Galaxy: Three reasons why Mt. Gox’s BTC dump will be less than expected, Bitcoin returns to $60,000
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Table of Contents
Mt. Gox Announces Commencement of Repayments
Will Bitcoin sell pressure continue for three months?
Where is the support level?
Once the world’s largest Bitcoin exchange, Mt. Gox has finally begun compensating creditors after a decade of bankruptcy litigation and numerous delays. It is anticipated that by October of this year, Mt. Gox will distribute 142,000 BTC and 143,000 BCH to creditors, a development that the market views as a factor in recent downturns in Bitcoin’s trends…
Mt. Gox Announces Commencement of Repayments
Just yesterday (5th), Mt. Gox issued documents revealing that it has begun to repay debts to creditors as planned. However, it is noteworthy that due to differences in the cryptocurrency exchanges through which creditors receive repayments, the timing of their receipt will vary. For example:
Kraken’s repayment timeframe is within 90 days;
Bitstamp’s is 60 days;
BitGo’s is 20 days;
SBI VC Trade and Bitbank are both at 14 days.
Screenshots circulating on social media indicate that some Japanese creditors have already received repayments in BTC and BCH, while others have reported receiving cash settlements via international wire transfers.
Will Bitcoin sell pressure continue for three months?
Bitcoin has experienced significant declines this week, reaching a low of $53,269 yesterday (5th), although it has since rebounded above $56,000. If Mt. Gox’s entire compensation period extends for three months, it could exert prolonged selling pressure on Bitcoin.
However, Galaxy research director Alex Thorn previously reported that Mt. Gox’s sell-off may be less than expected for three reasons. Whether this recent drop is due to Mt. Gox creditors selling off or market panic remains uncertain, and further observation is required.
Based on intensive trading zones, Bitcoin’s support level after dropping below $54,000 is estimated to be near $52,000, suggesting that the current rebound may lead to a double bottom retest.
Analyst Titan of Crypto from the community also pointed out that Bitcoin is currently at a critical 38.2% Fibonacci support level. If it holds steady, it may indicate that the bull market remains intact.
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Ten-year wait》Mt. Gox exchange repays! Will the settlement of 140,000 BTC cause a Bitcoin crash?