Bitcoin Climbs On Mt. Gox Rumors; Trading Firm Expects Imminent Drop To $22K

Bitcoin BTC/USD has experienced a 5% surge in its price over the past week, a rise attributed to speculations about a potential postponement of Mt. Gox's repayments until 2024, according to a report.

Although crypto trading firm QCP Capital still expects Bitcoin to fall to $22,000 in October, The Block reported.

This development comes ahead of Benzinga's Future of Digital Assets conference on Nov. 14, which will delve into various facets of the crypto realm.

Earlier this year, creditors of the now-defunct crypto exchange Mt. Gox, which went into bankruptcy protection in 2014, faced an April deadline to submit their reimbursement claims.

This set the stage for the repayments to commence by the end of October. 

Yet, there were indications from the Mt. Gox trustee that this timeline might be changed.

The exact amount of assets that Mt. Gox plans to distribute remains uncertain, but it is known to possess 142,000 BTC (valued at $3.9 billion), 143,000 Bitcoin Cash BCH/USD (worth $31.3 million), and 69 billion Japanese yen (equivalent to $467 million).

QCP Capital, in its recent market analysis, mentioned, "The significant uptick we're observing is predominantly due to whispers about a Mt. Gox postponement to 2024."

The firm added, "Considering the initial expected date was imminent, our assessment is that many opted for a short position.

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A formal declaration will likely trigger a short squeeze, mirroring the aftermath of the SEC vs. GBTC verdict from the previous month."

Nevertheless, QCP Capital predicts that this upward trend might be temporary. The firm foresees the momentum waning rapidly, especially as global uncertainties cast shadows over the cryptocurrency markets in the upcoming quarter.

QCP further said, "While the present Wave 2 of our C Wave expanded flat has shown the anticipated rebound, the pivotal Wave 3, which shatters the recent lows, is yet to manifest for our prediction to hold true."

However, QCP also recognizes that breaking past the previous highs of $32,000 would likely invalidate their forecast.

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