Mt. Gox Begins $9 Billion Settlement to Creditors

Mt. Gox, the defunct cryptocurrency exchange, has initiated the process to settle $9 billion owed to its creditors. Recently, it moved 47,229 Bitcoin, valued at $2.71 billion, to another wallet. This transaction followed a prior movement of smaller Bitcoin amounts to multiple wallets. The platform plans to repay creditors in Bitcoin, Bitcoin Cash, and fiat currencies, but will first transfer funds to various exchange platforms to handle transactions within 90 days.
This anticipated payout has caused significant market turbulence, with Bitcoin dropping below $60,000 to around $54,300 due to selling pressure. Other cryptocurrencies, like Ethereum and several altcoins, have followed suit. Crypto analyst Rachael Lucas from BTC Markets highlighted that the $9 billion payout would add substantial selling pressure.
Bitcoin’s price has dropped by 7.68% in the last 24 hours and 11.67% over the past week, with increased trading volume but a 7% decline in market cap. Despite a volatile market, short-term predictions suggest potential recoveries, with Bitcoin possibly reaching $68,597 in the next five days and $80,170 in 30 days. However, heavier fluctuations are expected as Mt. Gox continues its settlement process, likely keeping Bitcoin’s value around the $55,000 mark in the near term.