The impact of the decision to postpone compensation to Mt. Gox users on the Bitcoin price
Date: 2023-09-21 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Mt. Gox Payout Delay and Its Impact on the Bitcoin Price
An important event that has captured the attention of the entire cryptocurrency community is the decision to delay the compensation payouts to Mt. Gox users for a full year, until October 31, 2024. This decision has sparked numerous discussions and debates among cryptocurrency investors and analysts. The postponement of payouts has become a significant catalyst for changes in the Bitcoin market.
As of September 2023, Bitcoin was trading at $26,905. However, many experts note that the cryptocurrency market is highly sensitive to news and events. The decision to delay payouts has created uncertainty and negative predictions regarding the future price movement.
Impact of Payouts on Bitcoin's Active Supply
One of the key concerns among analysts is the impact of the Mt. Gox user payouts on Bitcoin's active supply. When users receive compensation after nearly 10 years of waiting, there is a possibility that they will start selling their digital coins in large quantities. This could lead to an increase in supply in the market.
UBS Analysts' Concerns and Their Impact on the Market
Interestingly, analysts from UBS had previously warned that these payouts could lead to an increase in Bitcoin's active supply and, consequently, a decrease in its price. While this prediction has not yet materialized, it still creates some tension in the market and leaves the possibility open for future price declines.
Impact of Events on the Market and Price Rebound
The events surrounding Mt. Gox and the decision to delay payouts have become a noticeable factor in Bitcoin's price changes. Recently, researchers from QCP Capital noted that rumors of the Mt. Gox payout delay until 2024 were the main reason for the price rebound from the $25,000 support level.
Searching for New Catalysts for Bitcoin Price Growth
With the extension of the payout deadlines, Bitcoin now requires a new catalyst for growth. However, according to numerous market researchers, such a catalyst is not currently evident. An increase in the target interest rate by the US Federal Reserve by the end of 2024 could exert additional pressure on the market and amplify uncertainty.
The History of Mt. Gox and Its Role in the Cryptocurrency Market
The history of Mt. Gox, which was once the world's largest cryptocurrency exchange, processing over 70% of all Bitcoin trades, cannot be ignored. The hacker attack in 2014 resulted in the loss of approximately 850,000 BTC, which, at current prices, amounts to a substantial sum. This incident left a long-term mark on the cryptocurrency market and made investors cautious.
