How Will Bitcoin Reacts As Mt Gox’s Payouts loom

The price of bitcoin hit a one-month low on Friday and was on track for its worst week in six months as investors booked profits after a protracted surge when BTC reach US25,000 and was unsettled by the prospect that creditors of the defunct cryptocurrency exchange Mt. Gox would liquidate their payments.

Many people are concerned that former Mt. Gox users may sell their recovered bitcoins as soon as they get their hands on them. While this is a developing story, your worries may be unfounded at this time as it progress into end of the week .

Creditors have the option of having their claims liquidated into cash or being repaid in native currency (a combination of bitcoin, bitcoin cash, and yen).

However,it is known Mt. Gox was unable to recover the stolen bitcoins. Mt. Gox has just about possibly an assortment of about 141,686 Bitcoins (BTC),69,776 million in yen and almost 142K in Bitcoin Cash of market holding price at the moment by the trustee

A large-scale dump is unlikely because the process requires a coordinated schedule, which is unlikely because of the following concern: as different creditors are due, unless they opt 100 percent for the trustee holding the BTC to liquidate all at once, and still the trustee needs to seek an approved ETF approval to sell 141,000 BTC, as possibly they comprises of both institutional and retail investor , remembering the last held price was only about USD 1000 for BTC at that time .

For 141K BTC units ,this volume is over 9% of daily exchange volume, but since Bitcoin is slowly climbing out of its gloomy funk, traders may decide to stagger payout unless they need the money quickly, some may ask the trustee for Cash ,so lumpsum dump is questionable ?

What, if anything, could cause this catastrophic event to occur during the present bear market cycle by Mt Gox ?

It seems Not likely , First, all creditors would have to agree to receive the early, lump-sum payment, at which point either everyone would choose to receive their payouts in BTC, BCH, and or cash combi-mixture and coordinate to dump all of that bitcoin at the same time (which would require a lot of cash and is a slow process), or the trustee would need to setup appropriate document and verification to cash out the BTC individually (which would need a lot of cash and is a slow process). This procedure necessitates coordination and permission from all relevant parties.

The procedure is time-consuming if a dump is coordinated, and even paying in cash over the counter will take some effort.

As horrible as the worst-case scenario is, it is still probably not going to happen.

All in all, predictions that the market will crash because of Mt. Gox’s rehabilitation payouts are groundless.

Do your own research and monitor the situation, if you do have tons of BTC .

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