Mt. Gox Creditors Start Liquidating Bitcoins Amid Surprisingly Minimal Market Impact

Mt. Gox’s Bitcoins on Move Once Again

A decade-old overhang of Bitcoin (BTC) held by creditors has finally started to dissipate, according to a recent analysis by NYDIG. Despite initial expectations that the release of these coins would create significant selling pressure, the market has been surprised by the lack of impact.

As you may be aware, Mt. Gox, once one of the largest cryptocurrency exchanges in the world, filed for bankruptcy in 2014 after losing approximately 850,000 BTC due to a hack and subsequent mismanagement. In the aftermath, creditors were given the option to offload their coins on the market.

However, instead of rushing to sell, many creditors have been waiting for more favorable market conditions before making any significant transactions. This has led to a situation where a large number of coins are simply sitting idle, creating an overhang in the market.

But now, it appears that this overhang is finally starting to dissipate. According to NYDIG’s analysis, the impact of Mt. Gox sellers on the market has been “minimal at best.” This development is being viewed as a bullish signal by many analysts.

The fact that Mt. Gox’s coins are not causing significant selling pressure could be indicative of the market’s growing maturity and increased trust in cryptocurrencies. As such, it may be a positive sign for the future trajectory of Bitcoin and other digital assets.

In related news, the Mt. Gox exchange has once again postponed its final repayment deadline. The original timeline had creditors being paid back by October 31st, 2023; however, this was later extended to October 31st, 2025.

Source: u.today