Creditors of crypto exchange Mt. Gox are about to recover some of their funds following a 10-year liquidation process, but concerns that large amounts of bitcoin (BTC) will be released onto the market are overdone, UBS (UBS) said in a report Monday.

The “rehabilitation plan” gives creditors several options on how they are repaid and the timing of any repayment, the report said. The most important are whether to take an early lump sum or wait for more proceedings and further asset recoveries, and whether to receive the funds in fiat or crypto, the report added.

While 850,000 bitcoin went missing from the exchange in 2014, it's not that amount that’s potentially being disposed of, because the exchange has recovered 142,000 BTC along with 143,000 in Bitcoin Cash (BCH) and 69 billion Japanese yen ($510 million), representing about 20% of the hack.

Still, the potential for the repayments to influence the price exists. That amount of bitcoin represents around 90% of average supply active within the last day and 28% in the last week. That’s significant because active supply increases are normally associated with weakness in the BTC price, the note said.

(By Will Canny)

Get the latest news here: Cointime channel — https://t.me/cointime_en