Mt. Gox repayment to 2025 could ease crypto selloff fears. Bitcoin faces uncertainty with elections, rate cuts and selloffs.
According to a recent notice from the Mt. Gox Rehabilitation Trustee, which some hoped would trigger a wave of bitcoin sales, the long-awaited Mt. Gox repayments are delayed until October 31, 2025.
Originally set for late October 2024, the Extended deadline Allows more time for borrowers who have not yet completed the necessary steps to repay.
Mt. Gox, an early crypto exchange that collapsed in 2014, owed its creditors about $9.2 billion in bitcoin.
When the initial payments began in July this year, market analysts and investors predicted that the influx of Bitcoin from payments would lead to significant market pressure.
“The market expects many Mt. Gox users to dump their tokens, but we could see a bounce back if sales are lower than expected,” said Rachel Lin, co-founder and CEO of SynFutures.
During that time, Bitcoin fell nearly 14% to a local low of around $54,000 before rocketing to $70,000 before the end of the month.
While this delay removes one major factor influencing the crypto market for now, the price of Bitcoin remains susceptible to other forces.
Key upcoming events include the US presidential election and monetary policy changes, which could raise prices or trigger more sales.
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In addition, a potential US government sale of 69,000 seized about $4.2 billion worth of Silk Road bitcoins as a wild card, adding to expected volatility in the coming months.
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