Mt. Gox Claims that 137,000 BTC are about to be offloaded on the open market are met with intense suspicion as BTC price volatility returns.
The lack of liquidity over the weekend appeared to increase already volatile markets and markets, which were reacted negatively to unconfirmed reports that Mt. Gox funds would be due to be released to creditors on August. 28.
The claims varied greatly in the moment of this writing with certain people believing that a block in the amount of 13,77,000 BTC was planned to be released in one sitting. Others claimed that the money would be distributed in pieces, and that payments will still begin this weekend.
A consensus was reached from creditors allegedly seeking to buy BTC due to them and this was not impossible since 2014 when BTC/USD was trading at less than $500. The unrealized 40X gains they were concerned about, could make it too attractive for lenders to be willing hodlers.
Mt. Gox was destroyed by several hundred thousand bitcoins nearly 10 years ago. After an long legal process concerning the funds which cointain Bitcoin recovered from the exchange the rehabilitation trustee appointed, Nobuaki Kobayashi, declared in July 6, that the trustee was “preparing to pay off” to the creditors.
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In the documentation in the period, Kobayashi stated in his documentation of the time “the the end in August” as a time frame in which the first payment could be made.
“Following conversations between and discussions with the Court and in compliance to the Rehabilitation Plan in accordance with the Rehabilitation Plan, the Rehabilitation Trustee will set the assignment to set the Assignment, etc. Restriction Period of Reference from the close of August until the entirety or a portion of the repayments in the initial repayments are complete for safe and secure Repayments” the text reads.
Without any new information being posted on the website detailing the rehabilitation process however, there was no explanation what the reason was for why the sell-off reports had gained momentum at such a rapid pace.
For analyst and trader Josh Rager, meanwhile, even if all the hoards of BTC were all sold at once and the resultant selling pressure won’t trigger the kind of catastrophe that some people have imagined.