Mt. Gox Repayment Deadline Approaches — Bitcoin Faces Potential New Wave of Selling Pressure

TradingKey – Bitcoin rebounds above $110,000, but will Mt. Gox repayments cap its upside?

On Monday, October 20, a series of bullish catalysts helped Bitcoin (BTC) recover strongly, climbing back above the $110,000 mark. As of writing, BTC is up over 4% intraday, trading at $111,286.

Bitcoin Price Chart – Source: TradingView.

On October 11, Bitcoin plunged 20,000 points, a 15% drop, followed by a brief rebound. On October 17, BTC retested the $100,000 level, hitting a low of $103,000, before bouncing back amid market skepticism.

According to diversified market data:

• 47% of users bet BTC will hit $100,000 by the end of October
• Only 8% expect BTC to reach $130,000, and just 4% see it hitting $150,000

Despite cautious sentiment, Bitcoin’s price is supported by several positive developments.

Bullish Catalysts Supporting Bitcoin

1. SEC Signals Regulatory Approval In a nationally televised interview, SEC Commissioner Paul Atkins stated that the U.S. has given Bitcoin “official recognition” or a “regulatory seal of approval.” This move is expected to boost adoption and signal a friendlier regulatory stance.
2. Prince Group BTC Seizure Added to U.S. Reserves According to Galaxy Research, the 127,000 BTC seized from Cambodia’s Prince Group, led by Chen Zhi, has been absorbed into U.S. crypto reserves — reducing fears of market dumping. The assets are valued at approximately $15 billion.
3. Federal Reserve Rate Cut Expected The CME FedWatch Tool shows a 99% probability of a 25 basis point rate cut in October, which could inject fresh liquidity and restore confidence after the “10/11 crash.”

Mt. Gox Repayment Risk

With the final Mt. Gox repayment deadline set for October 31, concerns are rising over potential sell pressure:

• Roughly 34,000 BTC remain in wallets linked to Mt. Gox
• These funds are part of the long-awaited compensation to creditors from the 2014 exchange collapse

However, analysts note:

• The amount is significantly smaller than recent U.S. government seizures
• Many recipients may choose to hold or sell gradually, rather than dump all at once

While the Mt. Gox repayments could trigger short-term volatility, the overall impact may be limited. With regulatory tailwinds, institutional accumulation, and macro liquidity support, Bitcoin’s rebound appears resilient. Investors should monitor wallet movements and policy signals closely as October 31 approaches.