In a development that could bring relief to Bitcoin (BTC) and the broader crypto ecosystem, Mt.Gox, now defunct cryptocurrency exchange which was hacked in 2014, announced a significant delay in its repayment plan to affected creditors. Originally scheduled for October 31, 2024, the fresh repayment date was extended to October 31, 2025.

Mt.Gox trustee announces fresh repayment schedule

This delay is especially noticeable considering that the repayment of approximately 200,000 BTC to creditors could have put downward pressure on the Bitcoin price.

If repayments went ahead as planned, there were fears that many affected investors could liquidate their holdings en masse, potentially exacerbating Bitcoin’s existing downward trend and leading to a edged drop in price.

In statement released Thursday, the Rehabilitation Trustee provided an update on repayment efforts. The Court noted that although significant progress had been made in processing repayments, many creditors had not yet received their funds due to incomplete procedures or problems encountered in the repayment process. The Trustee stated:

With the exception of certain types of repayments, the Rehabilitation Trustee has largely completed the basic repayment, early lump sum repayment and interim repayment for restructuring creditors who have completed the necessary procedures.

However, the statement emphasized that a significant number of rehabilitation creditors are still waiting for their debts repayment. In lightweight of these challenges, and with the court’s approval, the Trustee determined that it was in the best interests of all parties to extend the repayment deadline.

Key levels to watch for Bitcoin as it continues to fluctuate

Despite recent optimism around the Bitcoin market, the cryptocurrency has once again fallen below the critical $60,000 level. This decline follows a short-term uptrend triggered by the US Federal Reserve (Fed). decision to an interest rate cut on September 18, which initially boosted confidence among cryptocurrency investors.

Bitcoin had he gathered himself to about $66,500 on September 27, marking the best September result in more than a decade. However, the cryptocurrency has since faced a sell-off that has resulted in losses of more than 2% in the last 24 hours and almost 9% in the last two weeks.

Cryptocurrency analyst Rekt Capital has he noticed that Bitcoin is currently down about 6% in October. Historically, the cryptocurrency has only fallen twice in October: in 2014, when it fell by 12.95%, and in 2018, when it fell by 3.83%.

Both years were characterized by a bear market. Because the current year is a Half a year– an event that has led to price increases in the past – according to Rekt analysis, the prevailing belief is that Bitcoin can avoid a negative monthly close in October this year.

So Rekt Capital excellent that Bitcoin is currently testing the lowest weekly re-accumulation range, which is around $60,600. This level is key support, and maintaining a weekly close above it could set the stage for a potential move higher. Conversely, if Bitcoin fails to maintain this support, the analyst warns that it could lead to further declines, potentially pushing the price below $55,000.

At the time of writing, BTC is trading at $59,650, as seen in the BTC/USDT daily chart below.

Featured image from DALL-E, chart from TradingView.com