The Mt. Gox trustee has postponed the repayment deadline for creditors to October 31, 2025, which may alleviate concerns regarding potential Bitcoin selling pressure. With $2.8 billion of Bitcoin remaining in wallets, the delay is aimed at ensuring proper repayment procedures for creditors and preventing abrupt market fluctuations.

Mt. Gox, once the leading cryptocurrency exchange, has announced a postponement of the repayment deadline for its creditors, now set for October 31, 2025. This extension aims to alleviate immediate concerns regarding potential selling pressure on Bitcoin due to the distribution of remaining assets. Currently, crypto wallets associated with the exchange still contain approximately 44,900 Bitcoin (BTC), valuing at around $2.8 billion, despite the trustee having already distributed nearly $6 billion in assets this year. The delay is anticipated to reduce market apprehensions surrounding the significant amount of Bitcoin creditors may sell following a decade of waiting for restitution. Analysts from Coinbase commented, “This could assuage near-term concerns around supply overhangs, though there could be room for downside volatility once those on-chain funds begin moving again.” The Mt. Gox trustee indicated that numerous creditors had not yet received their repayments due to various procedural complications.

The Mt. Gox exchange, which collapsed in 2014 due to a major hack, continues to handle the complex process of repaying its creditors. The total amount of assets to be repaid is nearly $9 billion, of which $6 billion has already been disbursed. The extended deadline aims to facilitate the remaining claims and address issues hindering the repayment process. The significant asset holdings in Mt. Gox wallets have raised concerns in the Bitcoin market, prompting fears of a large influx of Bitcoin sales that could negatively impact prices. By postponing the distribution, the Mt. Gox trustee seeks to mitigate these selling pressure fears, providing time for the market to stabilize ahead of any potential liquidation by creditors.

In summary, Mt. Gox’s decision to postpone the repayment deadline until 2025 is a strategic move to minimize immediate market concerns over Bitcoin selling pressures. With $2.8 billion in Bitcoin still held in associated wallets, this extension provides a vital respite for both creditors and the cryptocurrency market. As repayment procedures are refined and completed, stakeholders remain alert to the future movements of these on-chain funds, which could significantly influence market dynamics. Analysts remain cautiously optimistic about the implications of this delay for overall Bitcoin market stability.

Original Source: www.coindesk.com

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