Summary:
Mt. Gox has begun repaying creditors in Bitcoin and Bitcoin Cash after a decade-long wait.
The repayment plan is expected to cause a short-term sell-off in Bitcoin as creditors liquidate their holdings.
Analysts predict a dip in Bitcoin prices in July, but a rebound in August.
Despite the selling pressure, the market is considered to have enough liquidity to absorb the impact.
The repayment plan involves billions of dollars worth of Bitcoin, representing 0.7% of the total Bitcoin in circulation.
The repayment plan is a major event for the Bitcoin market, but analysts believe it will have a temporary impact on the overall price.
Mt. Gox, the Japanese Bitcoin exchange that collapsed in 2014, has started making repayments to creditors in Bitcoin and Bitcoin Cash. This long-awaited repayment marks a significant milestone for the victims of the exchange's hack. However, the repayment plan is expected to have a short-term impact on the Bitcoin market as a large sum of Bitcoin will be sold by creditors who have been waiting for their funds for a decade. Analysts predict a dip in Bitcoin prices in July as creditors liquidate their holdings. But they also anticipate a rebound starting in August, as the market absorbs the sell-off. Despite the potential selling pressure, analysts believe that the market has enough liquidity to absorb the impact and that the overall impact on Bitcoin's price will be temporary. The repayment plan will see billions of dollars worth of Bitcoin being disbursed to creditors, and although it is a significant event, it represents only 0.7% of the total Bitcoin in circulation.
Comments