- The postponement of Mt.Gox's repayment until 2025 may ease concerns about a cryptocurrency selloff.
- Bitcoin faces uncertainties such as elections, interest rate cuts, and sell-offs.
The long-awaited Mt Gox repayment, which some expected to trigger a wave of Bitcoin selling, has been postponed until October 31, 2025, according to a recent notice from the Mt Gox Reorganization Trustee. .
Originally set for the end of October 2024, the deadline extension will give creditors who have not yet completed the necessary steps to repay more time.
MtGox, an early cryptocurrency exchange that collapsed in 2014, owes creditors about $9.2 billion in Bitcoin.
When the first repayments began in July of this year, market analysts and investors expected that the inflow of Bitcoin from the repayments could put significant pressure on the market.
Rachel Lin, co-founder and CEO of SynFutures, said: “While the market expects most Mt.Gox users to dump their tokens, we could see a rebound if sales are lower than expected. It may happen,” he said.
At the time, Bitcoin plummeted about 14% to a local low of about $54,000, but it soared to $70,000 before the end of the month.
While this delay has removed one major factor that could weigh on the crypto market for now, Bitcoin's price remains susceptible to other factors.
Major upcoming events include the US presidential election and changes in monetary policy, which could either increase prices or cause further declines.
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Additionally, the looming wild card possibility of the U.S. government selling 69,000 seized Silk Road Bitcoins worth approximately $4.2 billion adds to the expected volatility in the coming months.
