The Mt.Gox trustees announced they have 150,000 BTC to repay its users and many wondered whether their decision will start a correction on the market anytime soon so let’s read in our Bitcoin news today.
There’s a growing speculation that 150,000 BTC from the Mt.Gox trustee will happen in about 10 days but many factors suggest that it is highly unlikely. Between 2011 and 2013, Mt. Gox lost about 850,000 BTC in the biggest hack attack in history and the trustee now has 150,000 BTC to repay the users that lost their funds in the breach. However, there are a lot of things to be done before the funds can be issued. The refund process was delayed a few times before and the refunds will not happen anytime soon according to analysts.
Capitulation happened last year at $3k, we've been in a bull market ever since, it's just been camouflaged by BitMEX traders with the wild swings they create. $4k->$14k was the mother of all squeezes, retracing back to organic valuation took a while. https://t.co/6qG1NpzlT2
— Willy Woo (@woonomic) October 4, 2020
Mt.Gox trustee released a statement on the official exchange website and the trustee in charge of returning the funds to former users even granted a deadline by October 15 as the document said:
“In light of the foregoing, the Rehabilitation Trustee filed a motion to seek an extension of the submission deadline of the rehabilitation plan at the Tokyo District Court, and, on June 30, 2020, the Tokyo District Court issued an order to extend the submission deadline for the rehabilitation plan to October 15, 2020.”
Based on the document, some investors suggested that it could cause 150,000 BTC to move which could eventually rattle the market. There are two key reasons that the trustee will not move BTC in the near term while the extension pertains to submit the rehabilitation plan by not refunding the coins. The latest deadline is for the trustee to put a plan not to actually refund the investors. The trustee has also requested extensions multiple times over the past year while an identical statement was issued back in March 2020 and April 2019 when the extension was granted.
October 15 is not the actual deadline for the return of the funds as the trustee delayed the process multiple times and based on the factors, it is safe to assume that the 150,000 BTC from the trustee will not hit the markets in the short-term. In the past week, Bitcoin faced a few negative events which mounted major selling pressure on BTC. The United States CFTC charged Bitmex which immediately caused the cryptocurrency to pull back by about 5% while a day later, President Donald Trump contracted the coronavirus which caused many of the assets to correct.
Despite the pessimistic events, Bitcoin showed surprising resilience over October as it still remains above $10,500 which is a price level that acted as a critical support area since August.
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