Bitcoin Takes 8% Hit Due To Mt. Gox Rumors: Here's What Matrixport Is Predicting

Cryptocurrency services provider Matrixport analyzed the potential market impact of the Mt. Gox haul and concluded that it would have a limited effect on Bitcoin's (CRYPTO: BTC) price.

However, investors should still be aware of the eventual distribution of the 850,000 stolen Bitcoin from a hack that occurred in 2014, Coindesk reported.

Also Read: FTX Fallout - Bahamas Goes All-In On Crypto Legislation 

This analysis comes after Bitcoin experienced an 8% decline on Wednesday afternoon due to rumors of transactions involving wallets linked to the defunct cryptocurrency exchange, Mt. Gox.

"Since not all of the stolen BTC could be recovered, only a fraction of the original amount held by creditors will be compensated," Matrixport's head of research Markus Thielen wrote.

Creditors will receive a base payment with four options to receive the remainder of their funds. These include "early lump-sum repayment (where customers can recover 15%-20% of their lost funds), repayment by bank remittance, repayment for a portion of crypto rehabilitation claims in crypto, or repayment through a fund transfer service provider."

The report stated that the deadline for repayments is Sep. 30, with $1.7 billion in cash, 141,000 Bitcoin, and 142,000 Bitcoin cash (CRYPTO: BCH) to be distributed as part of a civil rehabilitation plan.

Despite the Mt. Gox news, Bitcoin was trading at around $29,146.30 at the time of publication.

Next: The Battle For Crypto Market Regulations Heats Up In Congress