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Bitcoin FUD Re-Instigates With Mt.Gox Rehabilitation Plan, Why Will Creditors Dump BTC in the Bear Market?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jul 8, 2022

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Article Highlights
  • Mt.Gox after a pretty long period is all set to distribute 150K BTC among the creditors by the end of August 2022

  • With the rounds of BTCs entering into circulation, the possibility of the creditor's dumping has made huge rounds, creating immense FUD within the current bear market

The Mt-Gox creditors, currently are experiencing a sign of relief as according to the recent update, attorney Nobuaki Kobayashi, trustee in the Mt.Gox confirmed the distribution of 150K Bitcoin. The creditors received a mail from the trustee that bought up the procedure of the rehabilitation plan. The creditors are now expected to receive Bitcoin or BitcoinCash as per the plan. 

With the confirmation, the Bitcoin price sliced through the consolidation and ranged high beyond $21,000 at the press time. As the star crypto gained bullish momentum, the FUD began circulating within the space speculating a massive BTC dump fast approaching. According to many, the creditors may just let off their holdings as they receive which may create huge turbulence in the markets causing the BTC price to slash below $10,000. 

On the other hand, some of the creditors claim this possibility is nothing by FUD to purposely bring the BTC price down. One of the creditors, Eric Wall, clearly stated to his 931,000 followers that he will not be selling a single satoshi. 

Therefore, while many believe, Bitcoin bottoms are very near and the prices are expected to surge notably until the end of 2022, the question arises, why will the creditors sell their Bitcoin during the bottoms?

No doubt, they are already in profit as they bought the asset when BTC price was around $300 to $400 and now the asset is trading above $21,000. However, it should also be considered that the asset has marked its highs close to $70,000 and with the next leg up, the asset may enter the bull market. The history of the BTC cycle itself says Bitcoin after a year-long consolidation tends to surge high to form new highs. 

While the Mt.Gox creditors have waited for 8 years to get their BTC back, they may wait for some more time until the Bitcoin(BTC) price validates a strong uptrend.  

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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