The world’s largest cryptocurrency fell below $56,000, hitting its lowest level in one month and possibly its worst weekly performance in more than six months.
At press time, Bitcoin is trading down 6.22%, down at $56,100 with a market capitalization of $1,057 trillion.
Now, there have been growing concerns that the creditors of the defunct cryptocurrency exchange Mt Gox may liquidate their payments.
A six-year rehabilitation plan to repay Mt Gox’s creditors has reached its final stage.
Earlier this week on November 16, Nobuaki Kobayashi, a trustee of Mt Gox, said the rehabilitation plan is now final.
Matthew Depp, chief operating officer of Singapore-based crypto asset manager Stack Funds, told Reuters there were profit-taking concerns among investors as a Tokyo court signed off on creditors’ payment plans.
Expectations indicate that these creditors are likely to turn into sellers.
“The selling pressure has been quite consistent.
Those affected will receive a sum of bitcoin, likely in the first or second quarter of 2022.
This has created some fear in the market in the long run.
Is this really a big concern?
Trading platform “Mt.Gox” controlled 70% of global bitcoin trading volume in 2014.
The platform lost a total of 850,000 BTC, with 200,000 BTC recovered.
The Mt.Gox chapter is coming to a close, with trustee Kobayashi saying that the creditors who have come forward to claim will get their bitcoins fairly quickly.
But there has been no timeline for this yet whether this will happen in the next few weeks or months.
Also, it is not clear whether payments will be made in bitcoin or in dollars.
Crypto analyst Lark Davis explains that even if the return is in bitcoin, the amount of sale will be minimal, and he explains it by saying:
Bitcoin’s daily trading volume is now 10 times what it was at the height of the mania phase in 2017.
We can easily absorb a few billion selling pressure spread over a few months.
If that’s what’s going on, Mt.Gox’s version of bitcoin will be a big burger that doesn’t have any fat!!!
The next few months could be interesting for the crypto market as investors remain on the brink of waiting.
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