It looks very similar to that bitcoin (BTC) investors can breathe a sigh of relief for the time being. Soon the creditors of Mt. Gox are allowed to receive their bitcoins back and the largest creditor has indicated that he will not sell this huge load. There was a fear that the sudden release of many thousands of bitcoins could cause a major crash.
Mt. Gox
Mt. Gox was by far the largest bitcoin exchange in the world years ago. It handled as much as 70% of all BTC transactions. At one point, however, the exchange was hacked and as many as 850,000 bitcoins were lost.
Later this year, however, a significant portion of these bitcoins will be returned to creditors. That prospect is causing panic in the market. After all, an astronomical amount of bitcoin could suddenly be dumped, which in turn could have serious consequences for the bitcoin price.
The single largest creditor, the Mt. Gox Investment Fund, however, has against Bloomberg told that they have absolutely no intention of selling their loot. Although it is not clear how much BTC this creditor is entitled to, it will undoubtedly be a huge amount.
The fund opted for an early payout in September rather than waiting for all lawsuits over the collapsed exchange to be resolved. It will get 90% of what is collectible at a ratio of roughly 70% bitcoin and 30% cash.
Bitcoin dump?
Other creditors have until tomorrow to decide whether they will also opt for the early payment, or whether they want to wait until the case is fully completed.
It is of course positive for bitcoin investors that the largest creditor promises not to sell bitcoin for the time being. Earlier, the market was reassured by the news that the two largest creditors would like their outstanding debt in bitcoin want to receive.
That does not mean that other creditors will do the same. It is not surprising to expect that many of them will immediately sell their recovered bitcoins or that they want to be paid in dollars. Time will tell.