Bitcoin

Mt. Gox’s 150,000 Bitcoin will not cause a correction in the near future

There is growing speculation about the possibility of that 150,000 Bitcoin (BTC) from Mt. Gox Trust will move on October 15th. However, many factors suggest that this is unlikely, given previous records.

Between 2011 and 2013, Mt. Gox lost 850,000 BTC in the largest hacking attack in Bitcoin history. The trustee reportedly has 150,000 BTC to reimburse users who lost their money in the attack.

However, there are many obstacles to overcome before refunds can be issued. The refund process has been continuously delayed since 2019, and refunds are unlikely to be processed anytime soon.

Mt. Gox’s 150,000 Bitcoin will not cause a correction in the near future
Mt. Gox’s 150,000 Bitcoin will not cause a correction in the near future

The Mt.Gox Trustee Statement

Statement by the Mt.Gox administrator. Source: Mtgox.com

Why is there suddenly speculation about the movement of 150,000 BTC of Mt. Gox?

On June 30, the Mt. Gox manager posted a statement on the official Mtgox.com website. The trustee responsible for redistributing the funds to former users said the Tokyo District Court had granted an extension of the deadline to October 15. The document read:

In view of the foregoing, the Rehabilitation Administrator filed an application with the Tokyo District Court to extend the deadline for submitting the rehabilitation plan, and on June 30, 2020, the Tokyo District Court issued an application to extend the deadline for submitting the rehabilitation plan to October 15, 2020 “.

Based on this document, Some investors have suggested that this could trigger the 150,000 BTC movewhat could shake up the market.

However, there are two main reasons why the trustee wouldn’t move Bitcoin in the short term.

First, the extension refers to the submission of the rehabilitation plan, No to BTC refunds. Simply put, the deadline is October 15 for the trustee to come up with a plan and not refund investors.

Second, the trustee has continuously requested extensions over the past year. An identical statement was issued in March 2020 and April 2019, and extensions were granted.

October 15th is not the actual deadline for user refunds and The administrator has delayed the process several times in the past. Based on these two factors It is safe to assume that the Mt. Gox trustee’s 150,000 BTC will not hit the market anytime soon.

Bitcoin remains stable despite negative events

In the last week, Bitcoin has faced numerous negative events that created significant selling pressure on BTC.

On October 1st, the US CFTC indictment against BitMEX caused Bitcoin to withdraw immediately by more than 5%24 hours later, U.S. President Donald Trump mandated COVID-19, which corrected most asset classes, including BTC.

Despite successive pessimistic events Bitcoin showed surprising resistance in October. BTC is still holding above $ 10,500, a price level that has acted as a critical area of ​​support since August.

The chain analyst in the medium and long term Willy woos The outlook for the Bitcoin market remains positive. He said:

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