Mt. Gox exchange released documents yesterday showing that it has begun to repay its debts to creditors through various cryptocurrency exchanges as planned. The entire repayment period will last for about 3 months, depending on the cryptocurrency exchange through which the creditors receive the repayment.
Following ten years of bankruptcy litigation and several delays, Mt. Gox, once the world’s largest Bitcoin exchange, has finally started compensating its creditors. It is expected that by October of this year, Mt. Gox will pay 142,000 BTC and 143,000 BCH to creditors, which has been considered as the culprit behind the recent slump in Bitcoin’s performance.
On the 5th, Mt. Gox released documents indicating that the repayment of debts to creditors has begun as planned through various cryptocurrency exchanges. However, it is worth noting that the actual time of repayment received by creditors will differ due to the different cryptocurrency exchanges through which they receive the repayment. For example, the repayment time for Kraken is within 90 days, while for Bitstamp it is 60 days, and for BitGo it is 20 days. SBI VC Trade and Bitbank have repayment times within 14 days.
There have been screenshots circulating on the community showing that some creditors in Japan have already received the repayment of BTC and BCH, and others have received cash payments via international wire transfer.
The past week has seen a severe decline in Bitcoin, with the lowest value reaching $53,269 on the 5th. Although it has since rebounded to above $56,000, if the entire compensation period from Mt. Gox may last for three months, it may bring longer selling pressure to Bitcoin. However, there have been reports by Galaxy research director Alex Thorn that the selling pressure from Mt. Gox may be less than expected for three reasons. It is still difficult to say whether the recent decline is due to Mt. Gox creditors selling or market panic, so it is necessary to continue to observe.
According to the volume profile, the support level for Bitcoin after it fell below $54,000 is approximately near $52,000. Therefore, it is not ruled out that the current rebound may experience a second bottom.
Analyst Titan of Crypto also pointed out that Bitcoin is currently at a critical 38.2% Fibonacci support level. If it can hold, it means that the bull market has not been broken.