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In a development that could provide relief for Bitcoin (BTC) and the broader crypto ecosystem, Mt. Gox, no more cryptocurrency exchange which was hacked in 2014, has announced major delays in its plan to repay affected lenders. Originally scheduled for October 31, 2024, the new return deadline has been pushed back to October 31, 2025.
Mt. Gox Trustee Announces New Payment Timeline
This delay is especially noticeable considering that the refund of about 200,000 BTC to debtors would have put downward pressure on the price of Bitcoin.
If the payments went ahead as planned, there were concerns that many affected investors might liquidate their entire holdings, which could exacerbate Bitcoin’s current decline and lead to a sharp price drop.
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In a statement released on Thursday, the Rehabilitation Trustee outlined the current status of recovery efforts. It noted that although great progress has been made in processing payments, many creditors have not received their money due to incomplete procedures or problems encountered during the payment process. The trustee said:
In addition to certain types of payments, the Rehabilitation Trustee has largely completed Base Repayment, Early Lump-Sum Repayment, and Interim Payment to rehabilitating creditors who have completed the necessary procedures.
However, the statement revealed that many creditors are still waiting payments. Because of these challenges, and with the permission of the court, the Trustee has decided that it is in the best interests of all parties to extend the payment deadline.
Key Levels to Watch for Bitcoin Amid Continued Volatility
Despite the recent optimism surrounding the Bitcoin market, the cryptocurrency has once again fallen below the key value of $60,000. This decline follows a brief increase caused by the US Federal Reserve’s (Fed) decision interest rate cut on September 18, which initially boosted confidence among crypto investors.
Bitcoin had it it gathered to around $66,500 on September 27, marking its best September performance in more than a decade. However, the cryptocurrency has since faced a selloff, resulting in losses of more than 2% in the past 24 hours and nearly 9% in the past two weeks.
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Crypto analyst Rekt Capital has it he revealed that Bitcoin is currently down about 6% in October. Historically, the cryptocurrency has experienced a decrease in October only twice: in 2014, when it decreased by 12.95%, and in 2018, with a decrease of 3.83%.
Both years were characterized by bear market conditions. As the current year ua One year-an event that has historically led to price increases-there is a general view that Bitcoin may avoid a negative monthly close this October, according to Rekt’s analysis.
Rekt Capital too noted that Bitcoin is currently testing the Weekly Re-accumulation Range Low, around $60,600. This level acts as a key support, and maintaining a weekly close above it could set the stage for a potential upside. Conversely, if Bitcoin fails to hold this support, the analyst warns that it could lead to further declines, possibly pushing the price below $55,000.
At the time of writing, BTC is trading at $59,650, as seen in the daily BTC/USDT chart below.
Featured image from DALL-E, chart from TradingView.com
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