Potential Bitcoin Market Impact from Mt.Gox Creditor Sales Highlighted by Analysts

The impending sale of 142,000 BTC (>$9 billion) by creditors of the defunct Mt.Gox platform in the coming weeks could “spook the market” and exert pressure on Bitcoin. This conclusion was reached by K33 Research.

It is anticipated that Mt.Gox will distribute its assets, comprising 142,000 BTC, 143,000 BCH, and 69 billion yen, to clients by October 31, 2024.

In January, the platform confirmed addresses for compensation, and in April, it updated payment details.

According to analysts, these updates may indicate that creditors could start receiving Bitcoin as early as next month, provided they follow a similar fiat repayment schedule as in March.

“The coins associated with Mt.Gox will be a significant negative factor for the price in the coming weeks,” the report states.

Experts explained that the distribution may not necessarily lead to increased selling pressure, as recipients “might hold onto them.” However, such an “overhang could spook the market.”

Clients of Mt.Gox have been waiting for the return of their funds for ten years. The civil rehabilitation process began in June 2018. In 2021, the Tokyo court approved the exchange’s plan.

The trustee presented the compensation proposal in December 2020. In January 2021, details of the plan became known, and in February, the court approved it for subsequent voting.

The voting started on May 31 and concluded on October 20. Approximately 83% of the exchange’s users supported the compensation initiative.