Bitcoin (BTC) surged over 6%, reaching $62,246, after the bankrupt cryptocurrency exchange Mt. Gox extended its creditor payment deadline. This news has supported Bitcoin’s recent upward momentum, calming concerns over potential selling pressure.

Current Status of Mt. Gox Payment Process

Mt. Gox, which started creditor payments in July, has made significant progress in its "Basic Repayment, Early Bulk Repayment, and Interim Repayment" phases. However, many creditors have yet to receive their payments due to incomplete procedural requirements. To address this, the Rehabilitation Trustee announced a one-year extension, with court approval, to expedite the process. The original deadline of October 31, 2024, has now been extended to October 31, 2025, giving creditors additional time. This extension brings relief to many awaiting payments.

Once controlling 70% of Bitcoin trading, Mt. Gox ceased operations in 2014 following a major cyber attack. While a large portion of the lost Bitcoins has been recovered, the bankruptcy process remains ongoing. The uncertainty surrounding the repayment process has at times caused volatility in the Bitcoin market, primarily due to concerns about selling pressure.

Bitcoin’s Price Reaction to the Decision

After the announcement, BTC was trading at $62,635, marking a 4% increase within 24 hours. The market responded positively to the reduced uncertainty surrounding Mt. Gox's creditor payments.

The extension allows creditors to complete their transactions without rushing, potentially reducing the risk of large-scale Bitcoin sales that could push prices down. This development is seen as a positive for the broader cryptocurrency market, contributing to a more stable environment and boosting confidence.