Mt. Gox Repayment to Commence – Crypto Price in Danger?
Mt. Gox, the collapsed crypto exchange, is making moves to start repaying its customers. The repayment process would be conducted using Bitcoin, likely resulting in a rise in the cryptocurrency’s price as a large chunk of BTC would enter circulation.
However, some fear that the influx of BTC on the market would cause a huge sell-off and bring Bitcoin’s price crashing down. How will this affect the rest of the crypto market and more specifically – altcoins?
Mt. Gox was once te world’s largest crypto exchagne. It was hacked in 2014, resulting in a loss of 850,000 BTC and leading to its closure. Since then, Nobuaki Kobayashi has been appointed as its trustee and has been disposing off Mtgox’s stockpile of BTC little by litte over time.
These sales were made at various points and were enough to bring down Bitcoin's price significantly when they occurred. However, these sales have since become less frequent since the asset's price began rising.
With the recent announcement that it will begin repaying customers using BTC and BCH payments instead of cash payments, it is feared that another big dump could be expected when Mt. Gox releases a large chunk of BTC on to the market.
The result could be decreased liquidity across all digital assets as funds migrate out of other cryptos into Bitcoin before selling off.