- The Rehabilitation Trustee of Mt. Gox will start its repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) by July.
Mt. Gox Announcement
The now-defunct Bitcoin exchange platform Mt. Gox announced this Monday that it will begin repaying clients in July. The Rehabilitation Trustee, Attorney-at-Law Nobuaki Kobayashi, has already prepared settlements in Bitcoin and Bitcoin Cash.
The distribution of the funds shall be coursed through crypto exchanges, which the Rehabilitation Trustee has established as links for the exchange and confirmation of the required information for enforcing the repayments. However, Kobayashi didn’t mention the specific exchanges associated with the matter.
Nonetheless, the Rehabilitation Trustee ensured that it exercised due diligence and set up certain safety steps for the implementation of the event. This was to guarantee regulatory compliance within the jurisdictions involved in the process.
Investor Concerns
The announcement certainly came as good news for the aggrieved parties in the case, but some investors and traders have raised their concerns about the possible effects of the repayments in the market. These mirror the same issues pinpointed by K33 Research in April.
According to the firm, Mt Gox will distribute 142,000 BTC and 143,000 BCH. These are worth around $8.662 billion and $50.765 million, respectively.
The recipients will reportedly get more than what they invested in 2013. Given the higher value of repayments and the uncertainty in the market right now, this will likely result in investors and traders selling their digital assets at the get-go, or at least some of them.
The ensuing event is expected to exert selling pressure on Bitcoin and Bitcoin Cash, which may pull their prices further down.
Bitcoin and Bitcoin Cash Now
Bitcoin plummeted from a 24-hour high of $64,162.37 to a $60,853.70 low today. As of 3:00 AM UTC, it has settled at $61,250. Despite the reassuring notice from Mt. Gox’s Rehabilitation Trustee, it suffered an over 4% decline within the day.
Meanwhile, Bitcoin Cash also reflected a loss of 7% within the same timeframe as it hovered around $350. The token started the day at a $385.55 high before sinking to a $347.84 low.
Crypto Fear and Greed Index
The Crypto Fear and Greed Index measures the cryptocurrency market’s overall sentiment. It just dialed to 51 today from a score of 55 yesterday.
The index is based on a scale of 0 to 100, wherein the highest number represents “Extreme Greed” while the lowest indicates “Extreme Fear.” The former suggests an impending market correction, while the latter shows a good buying opportunity.
At this rate, the numbers mean mixed sentiments for traders and investors. As such, everyone is advised to tread with caution during the trend.
