150,000 Bitcoin Coming Back to Mt. Gox Creditors in 10 Days; Will BTC Price Drop?
After being postponed several times, the hacked Mt. Gox Bitcoin will finally be sent to the rightful owners of those BTC in 10 days' time, i.e., October 15, 2020.
The last date of the rehabilitation plan was July, set in March this year by the Tokyo District Court.
The Japan-based Bitcoin exchange was launched in 2010, which was managing 70% of all bitcoin transactions worldwide. Former Ripple CTO Jed McCaleb was the one behind this exchange but sold it to Mark Karpelés just after three months.
Between 2011 and 2013, the exchange reported the loss of around 840k BTC, about 6% of all bitcoin in existence at the time. The initial loss of funds sent the price of one Bitcoin on the exchange to just one cent. At the time of writing, BTC/USD has been trading at $10,700.
The company announced bankruptcy, and although 650,000 BTC were never recovered, 200,000 BTC were in fact recovered.
At one point, Mt. Gox was investigated by the US Department of Homeland, and a former business partner sued to claim a breach of contract.
Mt. Gox creditors have been empty-handed for a long time due to the ongoing bankruptcy process until a Japanese court finally put a rest to it and put it under rehabilitation law.
Volatility Coming for Bitcoin?
After going through various deadline postponements, the day could finally be here. This has rattled some of the market participants who believe this could have a “catastrophic impact” on the price of BTC. According to one such participant,
“If 150,000 BTC is sold on the market, it would cause a brutal drop, and fear would quickly spread across the markets.” This is because creditors will take the opportunity to take profits on the “over 2,600% ROI from 2014.”
However, it is a very real possibility that bitcoin won’t react at all. In 2020, we saw MicroStrategy bring about $425 million worth of BTC that did not affect whatsoever on the price of the leading digital asset.
These past couple of weeks, we also saw big news like the $281 million KuCoin hack, CFTC bringing criminal charges on popular crypto derivatives exchange BitMEX, and the US President Donald Trump testing coronavirus postie having a ‘zilch” effect on the price of BTC.
Bitcoin has become almost boring for many traders, with its 180-day volatility falling to a two-year low. The digital asset is holding strong to its $10k mark; as a matter of fact, Bitcoin’s winning streak of sustaining above $10,000 has made a new high of 70 days. As per data source IntoTheBlock,
“The IOMAP shows that over 1.45 million BTC was purchased by 1.76 million addresses between $10,427 and $10,736.81. This is expected to (and has been) an area of strong support.”