In a development that could offer relief for Bitcoin (BTC) and the broader crypto ecosystem, Mt. Gox, the defunct cryptocurrency exchange that was hacked in 2014, has announced a significant delay in its repayment plan for affected creditors. Originally set for October 31, 2024, the new deadline for repayments has been pushed to October 31, 2025.
Mt. Gox Trustee Announces New Repayment Timeline
This delay is particularly notable given that the repayment of approximately 200,000 BTC to creditors could have exerted downward pressure on Bitcoin’s price.
Had the repayments proceeded as scheduled, there was concern that many affected investors might liquidate their holdings en masse, potentially exacerbating Bitcoin’s existing downtrend and leading to a sharp price decline.
In a statement released on Thursday, the Rehabilitation Trustee outlined the current status of the repayment efforts. It noted that while significant progress has been made in processing repayments, many creditors have yet to receive their funds due to incomplete procedures or issues encountered during the repayment process. The Trustee stated:
With the exception of certain types of repayments, the Rehabilitation Trustee has largely completed the Base Repayment, Early Lump-Sum Repayment, and Intermediate Repayment for rehabilitation creditors who have completed the necessary procedures.
However, the statement highlighted that a considerable number of rehabilitation creditors still await 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.
Key Levels To Watch For Bitcoin Amid Ongoing Fluctuations
Despite recent optimism surrounding the Bitcoin market, the cryptocurrency has once again fallen below the critical $60,000 mark. This decline follows a brief uptrend triggered by the US Federal Reserve’s (Fed) decision to cut interest rates on September 18, which initially boosted confidence among crypto investors.
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, the cryptocurrency has experienced downturns in October only twice: in 2014, when it fell by 12.95%, and in 2018, with a decline of 3.83%.Â
Both years were characterized by bear market conditions. With the current year being a Halving year—an event that historically has led to price increases—there is a prevailing sentiment that Bitcoin may avoid a negative monthly close this October, according to Rekt’s analysis.
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. Conversely, if Bitcoin fails to hold this support, the analyst warns that it could lead to further declines, potentially pushing the price below $55,000.
At the time of writing, BTC trades at $59,650, as seen in the daily BTC/USDT chart below.Â
Featured image from DALL-E, chart from TradingView.com
