Will the addition of 140,000 BTC by Mt. Gox cause a deluge on the market?
The Mt Gox dispute was settled in 2021, and creditors are now due their BTC. 140,000 BTC are owed to creditors, which is good news for anyone who lost money on the collapsed exchange. Given the enormity of the settlement, bitcoin investors are worried about dumping so many BTC at once.
Mt. Gox BTC flood rumors spread like wildfire. Investors feared the extra supply would cause the bitcoin price to plummet further. A Mt. Gox creditor has stepped forward to reassure investors.
Eric Wall, one of Mt. Gox’s creditors, took to Twitter to explain how BTC will be reimbursed. He denied that bitcoins would be released all at once. They’d be released in installments.
Mr. Wall said the payments mechanism wasn’t even functioning. He said they still don’t know where to send their BTC. The reimbursement will be made in installments.
Supply and demand rule every market. In this market, supply must remain low so prices can recover. If a market receives 140,000 BTC without enough demand, the price will drop. This worried investors.
Wall advised dividing payments into tranches. Even if creditors dump their BTC, it will be a modest amount at a time, giving the market time to absorb each additional supply.
The reimbursement process will take months. Creditors must register for repayment. Given this repayment scheme, the refunded BTC is unlikely to affect the digital asset’s price.