The cryptocurrency market, which seems to have largely neutralized last week's correction, may face a significant problem that could prevent a possible rally in the coming weeks, according to the analysis company.
In a report published today, cryptocurrency analysis firm K33 Research found that Mt., a cryptocurrency exchange that collapsed due to a massive hack in 2014. Gox is preparing to distribute approximately 142,000 Bitcoin (BTC) worth about $9.5 billion and 143,000 Bitcoin Cash (BCH) worth $73 million to its creditors.
According to analysts, this large payment could potentially put significant downward pressure on the prices of these assets.
“Mt. Gox coins could become a significant negative price contributor in the coming weeks,” authors Anders Helseth and Vetle Lunde wrote.
This warning comes after creditors Mt. It comes as they noticed recent updates to BTC and BCH claims in the Gox claim application system. This development may indicate that payments may be made sooner than previously expected. The trustees of the now-defunct exchange had set a deadline of October 31, 2024 to repay creditors.
According to the K33 report, in mid-March, creditors observed a similar update regarding cash refunds, with several users reporting receiving transfers.
The authors suggested that if the process of distributing crypto payments is similar to fiat refunds, creditors could start receiving digital assets as early as next month.
While creditors are unlikely to sell their payouts all at once, the anticipation of this event could cause market participants to tread cautiously and avoid taking risks, according to the report.
Helseth and Lunde cautioned that “repayments do not necessarily equate to selling pressure, as creditors may choose to retain funds,” but that it is “an overhang that could soon spook the market.”
*This is not investment advice.