The now-closed cryptocurrency exchange Mt. Gox announced it will begin repaying its customers in Bitcoin (BTC) and Bitcoin Cash (BCH) starting in July 2024. This is a major step in resolving claims from Mt. Gox's collapse back in 2014.

The repayment process will start with exchanges that have completed the required information exchange and confirmation procedures. Mt. Gox emphasized it will follow global financial regulations and work with exchanges and agencies to ensure smooth and reliable payments to creditors.

Although the repayments will happen in stages, Mt. Gox asked creditors to be patient as the process will take time. In total, Mt. Gox has around $10 billion worth of BTC and BCH to pay back to its customers, who have been waiting nearly a decade to receive their funds.

Soon after the announcement, the price of Bitcoin dropped by 5%, falling below $64,500. The increased selling pressure has pushed BTC down further to under $63,000. It's unclear if creditors will sell their Bitcoin holdings, which have appreciated significantly since 2014.

Analysts suggest the market's reaction to the Mt. Gox news may be more severe than necessary. The repayments are happening as Bitcoin miners are already selling large amounts of BTC due to lower profits after the recent halving event. The combination of these factors is putting downward pressure on the Bitcoin price.