$4 Billion Bitcoin Remains Locked as Mt. Gox Extends Creditor Payouts

Mt. Gox, one of the pioneers of crypto exchanges, has shifted the repayment of its creditors to a one-year period. The inoperative Bitcoin exchange announced that the new date for its repayment is October 31, next year.

A recent report showed that Mt. Gox has repaid about 19,500 creditors through its base repayment and intermediate payment systems. These distributions were granted to those who were qualified and could meet all the eligibility requirements.

However, a huge number of creditors who couldn’t meet this criterion are still waiting due to processing delays and incomplete documentation. This led the Tokyo District Court to approve another deadline and extension.

Mt.Gox Faces Third Major Repayment Delay despite Rising Frustration

This extension marks the third major delay since the repayment schedule was first initiated and fixed for October 31, two years ago. Even though more frustration is expressed, the trustee made more emphasis that repayment should be ensured on the new deadline.

Blockchain information revealed that Mt. Gox still holds 34,689 BTC, which runs up to approximately $4 billion, in its official wallet. The exchange also has plans to share a part of the assets it recovered, including 69 billion Japanese yen (approximately $510 million), 142,000 BTC, and 143,000 Bitcoin Cash (BCH) in fiat currency.

Even though many creditors have already received their repayments through Kraken and Bitstamp since mid-last year, a large number still remain untouched. Now the repayments would be delayed till next year, which suggests that $4 billion worth of potential sales pressure has been withdrawn from the market, waiting for another year.

Mt Gox Postponement Eases Market Pressure, Boosts Bitcoin Confidence

The postponement indicates that Mt. Gox’s delay has removed a massive psychological stress from Bitcoin investors, one market expert said. When the macro outlook is turning positive, traders worry less.

The timing of this extension could affect Bitcoin bulls. The U.S. Federal Reserve has given a hint at an end to possible interest rate and quantitative tightening cuts next year, while trade pressures between China and the U.S seem to be calm.

The three factors indicate one issue, which is that the market will soon be experiencing liquidity. Plus, the Mt. Gox delays, the improving macro landscape, and reduced selling pressure could cause the perfect setup for Bitcoin’s next bullish season.

Since repayments have now been postponed until October 31, next year, creditors must endure another year that’s not certain. As for the full crypto market, the delay removes billions in potential selling pressure, a temporary trigger that could stabilize and strengthen the Bitcoin price in the coming months.

Partial repayments had been progressive, but the final resolution of the Mt. Gox liquidity, more than 10 years after its collapse, has remained a work in progress.