As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of twists and turns. The recent announcement by Mt. Gox regarding their repayment plan is one such development that has piqued my interest. Given my past experiences, I can appreciate the potential implications this delay could have on Bitcoin’s price dynamics.
In a potentially beneficial turn of events for Bitcoin (BTC) and the wider crypto community, Mt. Gox – the collapsed cryptocurrency exchange that was breached in 2014 – has extended the timeline for its repayment plan to affected users. The previously scheduled deadline for repayments, which was set for October 31, 2024, has now been moved to October 31, 2025.
Mt. Gox Trustee Announces New Repayment Timeline
It’s worth noting that this delay stands out because, had the return of around 200,000 Bitcoins to the lenders occurred, it might have caused a drop in Bitcoin’s value due to increased supply.
If the scheduled payments had gone through, there would have been a worry among us investors that a large number of us might sell our Bitcoins all at once. This mass selling could have intensified the ongoing downward trend in Bitcoin’s price, causing a significant drop.
On Thursday, the Rehabilitation Trustee provided an update on the ongoing repayment plan. They mentioned that substantial advancements have been achieved in handling repayments, but there are still several creditors who haven’t received their money yet. This is because some procedures remain incomplete or problems have arisen during the repayment process. The Trustee expressed:
Except for specific kinds of payments, the Rehabilitation Trustee has generally finished handling the Base Payment, Early Lump-Sum Payment, and Intermediate Payment for creditors involved in the rehabilitation process who have fulfilled the required steps.
Despite many rehabilitation lenders yet to receive their due payments, the situation has prompted some adjustments. With the court’s approval, the Trustee decided that extending the repayment deadline would serve the best interests of all involved parties.
Key Levels To Watch For Bitcoin Amid Ongoing Fluctuations
Regardless of the recent optimism about Bitcoin, it has dipped back below the crucial $60,000 level. This drop comes after a temporary rise in value following the US Federal Reserve’s (Fed) decision to lower interest rates on September 18, which temporarily increased crypto investors’ confidence.
On September 27, Bitcoin reached roughly $66,500, marking its strongest showing for September in more than ten years. But since then, it’s experienced a downturn, leading to a drop of around 2% within the last day and nearly 9% over the past fortnight.
As a researcher delving into the realm of cryptocurrencies, I’ve noticed that Bitcoin has dipped approximately 6% this October. Interestingly, Bitcoin’s history shows that such downturns occur rarely in October – specifically, they happened only twice before: in 2014, where it plummeted by 12.95%, and again in 2018, with a decrease of 3.83%.
In simple terms, both years experienced downturns similar to a bear market. However, since the current year is a Halving year – which typically triggers price rises – there’s a widespread belief that Bitcoin might dodge posting a negative monthly closing in October as suggested by Rekt’s analysis.
Rekt Capital points out that Bitcoin is now approaching the lower boundary of its weekly re-accumulation zone, approximately at $60,600. This area is significant as potential support. If Bitcoin manages to finish the week above this level, it may pave the way for an anticipated rise. However, if Bitcoin cannot sustain this support, Rekt Capital cautions that it might trigger additional drops, possibly causing the price to fall below $55,000.
At the time of writing, BTC trades at $59,650, as seen in the daily BTC/USDT chart below.
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2024-10-11 09:43