Mt.Gox lenders recently noted an update on their claims against Crypto, which could mean payouts could be coming soon. According to K33 analysts, the over $9 billion BTC distribution could “be a significant contributor to negative price contribution in the coming weeks.”.
The Crypto market largely ignored last week's correction, but there is a possible catalyst ahead that could put pressure on prices over the next few weeks, putting the Rally at risk.
Crypto firm K33 Research reported on Tuesday that Mt.. Gox, the crypto exchange that collapsed due to a hack in 2014, is preparing to distribute 142,000 Bitcoin (BTC) worth approximately $9.5 billion and 143,000 Bitcoin Cash (BCH) worth $73 million to lenders, creating a significant preponderance in the prices of digital assets.
«Coins Mt. Gox could become an important source of negative price action in the coming weeks,” write authors Anders Helseth and Vetle Lunde.
The warning comes as creditors saw their BTC and BCH claims recently updated on the Mt claims system. Gox, which could herald upcoming payments sooner than previously expected. Last year, the defunct exchange's trustees set an October 31, 2024 deadline for repaying creditors.
Read more: Mt.. Gox gets closer to paying Bitcoin to victims of 2014 hack
In mid-March, lenders saw similar information about their cash payments, with several users saying they had received the transfer, the K33 report noted.
According to the authors, if Crypto's payout process mirrors the return of fiat money, lenders could start receiving digital assets as early as next month.
While it is unlikely that lenders will sell off their payouts en masse, the report explains, such anticipation could prompt market players to remain cautious and risk-averse in the lead-up to the event.
«The payouts do not necessarily mean selling pressure as lenders may choose to hold back funds,» but it is «an overhang that could soon spook the market,» Helseth and Lunde say.