Bitcoin rises over 6% as Mt. Gox extends creditor payment deadline

Bitcoin (CRYPTO:BTC) surged over 6% following the announcement that the bankrupt cryptocurrency exchange Mt. Gox has extended its creditor payment deadline.

The Rehabilitation Trustee revealed that the original deadline of October 31, 2024, has been postponed by one year to October 31, 2025, allowing creditors more time to complete the necessary procedures for receiving payments.

Mt. Gox, which once managed 70% of Bitcoin trading, ceased operations in 2014 after a massive cyberattack and has been gradually progressing in its creditor repayment process.

The exchange had initiated the “Basic Repayment, Early Bulk Repayment, and Interim Repayment” phases in July, but many creditors were unable to receive payments due to incomplete procedures.

The newly extended deadline offers significant relief to creditors still working to finalise their transactions.

The market responded positively to the news of the extended payment timeline, viewing the extension as a reduction of uncertainty that had loomed over the market.

There had been concerns about potential selling pressure if large amounts of Bitcoin were suddenly liquidated by creditors, and this extension helps alleviate that worry.

The added time is expected to ease concerns about the selling of recovered Bitcoins, which could have negatively impacted the market.

With the extended deadline, the risk of massive sell-offs appears diminished, contributing to the stabilisation of Bitcoin's recent upward momentum.

At the time of writing, the Bitcoin price was $62,696.66.