The extension of Mt. Gox's payout period until October 2025 is mildly positive news for bitcoin. This decision reduces the risk of a large overhang of BTC being dumped onto the market all at once, which could put heavy pressure on the price action. Given that the exchange still has $2.7 bln in cryptocurrency in its wallet, a longer distribution period for these funds will allow the market to absorb this volume more smoothly.
The market may react to this news with an uptick, as the short-term risk of massive selling by compensation recipients is reduced. Many BTC holders were concerned that a sharp distribution of such a large number of coins could trigger a flash crash. Now that the process will be stretched out over time, these concerns should be mitigated. In addition, some compensation recipients may prefer to hold on to their bitcoins, given the current bullish market trend.