April 17, 2024

Mt. Gox Schedules Payout For September 15, Coinciding The Merge

Good news to investors as Mt. Gox finalizes a new date for payouts. Initially, the company had fixed August to pay up its dues to owed individuals, but due to unforeseen circumstances, it could not go through with the plan. However, according to a recently published update, it has rescheduled the payment date for September 15.

Will The Market Be Affected By The Payout?

Analysts opined that a likely end to the observed tranquility in the cryptocurrency market could be drawing nigh as potential factors for high volatility begin emerging. With reasons hinting at the imminent Ethereum upgrade to Proof-of-Stake and Mt. Gox’s rescheduled remuneration date. 

According to Mt. Gox, it will be moving 137,000 Bitcoins, an equivalent of three billion dollars, out to parties owed on the same day expected of the ERC-20 network remodeling.

However, the news has raised concerns among retailers as to whether this could affect the price of BTC alongside other digital assets. This rising fear is from the possibility of a massive sell-off by those getting paid. On the other hand, it could cause an uptick in the prices of cryptocurrencies.

Therefore, to address the issue, Richard Heart stepped forward to inform the public that the action might not incite a massive downturn in the market as feared. It is just a date when credit transfers within the system will be on hold. 

Also, Mt. Gox presented its creditors with a document in the form of an agreement to either receive their BTC in good time but in bits or wait for a later date when they can be paid in full, which most likely will be after wrapping up its recovery process. 

Although, a notice as such should morph several holders into bears to avoid getting dumped on when the impending heavy volume waltzes in, especially since nothing is assured. He commented further that the company does control its transactions, so there should be no fear regarding a sharp $3 billion sell-off. But then he attributed the probable cause of high volatility to the inbound Ethereum upgrade.

Possible Factors That Can Alter The Market State 

Apart from The Merge making a lot of noise among investors and raising doubts about price range bounce, another factor that could spur a change in market condition is the September twenty-one FOMC meeting. 

The Federal Open Market Commission meets eight times a year. According to analysts, each time they meet is considered a season of high fluctuation in the financial market. And this is because they deliberate on monetary policy and make changes to exchange rates, interest rates, and other related segments. 

If an alteration is activated, it directly impacts the market for digital assets. As a result, traders often take note of scheduled meetings to avoid getting trapped, or worst, liquidated in the event of a pressurized reaction by the market.

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