More Details About the Mt. Gox Bitcoin Repayments: What’s Next?

Defunct cryptocurrency exchange Mt Gox has finally started paying off its creditors ten years after declaring bankruptcy.

According to advertisement From the Gox Mountain Rehabilitation Fund, the defunct estate distributed Bitcoin (BTC) and Bitcoin Cash (BCH) payments to certain creditors on July 5 through select crypto exchanges linked to the repayment plan.

Mt Gox Starts Paying Installments

The Mt Gox trustee will continue to pay other creditors upon meeting certain conditions, including confirming the validity of registered accounts, completing discussions with designated cryptocurrency exchanges, and ensuring that payments can be made safely.

The rehabilitation trustee has asked eligible creditors to be patient while the cases are settled. The estate intends to complete the payments before the October 31 deadline.

The Mt Gox distribution kicks off as BTC struggles to stay above $54,000 after falling by around 5% in the past 24 hours. BCH, on the other hand, is down 12% in the same timeframe and is hovering around $300 at the time of writing.

Over the past few weeks, there have been concerns that the selling pressure from Mt Gox’s distribution could trigger a major correction in Bitcoin. While on-chain experts believe that the Bitcoin moves made by the now-defunct company are not a cause for concern and will not cause any immediate selling pressure on the cryptocurrency, Bitcoin charts say otherwise.

Is it possible for Bitcoin price to fall further?

Earlier on Friday, bitcoin briefly fell below $54,000 after Mt Gox moved $2.7 billion worth of bitcoin to a new address in preparation for the payments. A similar move was seen in May when bitcoin fell 4% from $70,000 after Mt Gox moved its bitcoin.

As payments continue to be made, Bitcoin is at risk of falling to $50,000, with Mt Gox’s creditors likely to sell their assets once they are received. This potential decline could also be accelerated by the continued selling of Bitcoin by the German government, which has offloaded around 9,641 Bitcoin worth over $539 million in the past 15 days. A government-linked cryptocurrency wallet still holds around 40,000 Bitcoin.

As Bitcoin continues to slide, liquidations in the crypto market have surpassed $660 million and are likely to increase in the coming days. Regardless, analysts insist that the leading crypto asset is headed for another rally as the market remains in a bullish season.