TLDR
Mt. Gox delays repayment plan for affected creditors to October 31, 2025
Delay could offer relief for Bitcoin price, preventing potential mass sell-off
Rehabilitation Trustee cites incomplete procedures and issues for delay
Bitcoin currently trading below $60,000, down 2% in 24 hours
Analyst highlights $60,600 as crucial support level for Bitcoin
Mt. Gox, the defunct cryptocurrency exchange that fell victim to a major hack in 2014, has announced a significant delay in its repayment plan for affected creditors.
Originally scheduled for October 31, 2024, the new deadline for repayments has been extended to October 31, 2025. This delay could have important implications for the Bitcoin market and the broader cryptocurrency ecosystem.
The Mt. Gox hack, which resulted in the loss of approximately 850,000 bitcoins, was a pivotal moment in cryptocurrency history.
Since then, the exchange has been working through a rehabilitation process to compensate affected users. The latest announcement comes from the Rehabilitation Trustee, who is overseeing the repayment process.
According to the Trustee’s statement, while significant progress has been made in processing repayments, many creditors have yet to receive their funds.
This is due to a variety of factors, including incomplete procedures and issues encountered during the repayment process.
The Trustee explained that they have “largely completed the Base Repayment, Early Lump-Sum Repayment, and Intermediate Repayment for rehabilitation creditors who have completed the necessary procedures.”
However, the statement also highlighted that a considerable number of rehabilitation creditors are still waiting for their repayments.
In light of these challenges, and with permission from the court, the Trustee determined it was in the best interest of all parties to extend the deadline for repayments.
This delay could potentially offer relief for the Bitcoin market. There were concerns that if the repayments had proceeded as originally scheduled, many affected investors might have chosen to liquidate their holdings all at once.
This mass sell-off could have put significant downward pressure on Bitcoin’s price, potentially exacerbating any existing downtrend.
The news comes at a time when Bitcoin’s price has been experiencing fluctuations. Despite recent optimism in the crypto market, Bitcoin has once again fallen below the $60,000 mark.
This decline follows a brief uptrend triggered by the US Federal Reserve’s decision to cut interest rates on September 18, which initially boosted investor confidence.
Bitcoin had rallied to approximately $66,500 on September 27, marking its best September performance in over a decade. However, the cryptocurrency has since faced a sell-off, resulting in losses exceeding 2% in the last 24 hours and nearly 9% over the past two weeks.
Crypto analyst Rekt Capital has pointed out that Bitcoin is currently down around 6% for October. Historically, Bitcoin has experienced downturns in October only twice: in 2014 and 2018, both of which were bear market years.
#BTC
Bitcoin is almost -6% down for the month of October
The only times Bitcoin ever produced downside in the month of October was in 2014 (-12.95%) and 2018 (-3.83%)
Both Bear Market years
Bitcoin is currently in a Halving year
History suggests chances are high that… pic.twitter.com/oyebhUw8gP
— Rekt Capital (@rektcapital) October 10, 2024
With 2024 being a Halving year—an event that historically has led to price increases—there is some optimism that Bitcoin may avoid a negative monthly close this October.
Rekt Capital also noted that Bitcoin is currently testing the Weekly Re-Accumulation Range Low, which is around $60,600.
This level serves as crucial support, and maintaining a weekly close above it could set the stage for a potential upward movement.
