While the leading cryptocurrency Bitcoin started the new week with a decline, it received a blow with a new development in the Mt.Gox incident, which is called the Bitcoin nightmare.
BTC fell sharply after Mt.Gox trustee announced that it would start in July.
While this decline is due to the fear of selling pressure that Mt.Gox refunds will create on the BTC price, analysts believe that this selling pressure may be lighter than expected.
At this point, Galaxy Research argued that a significant portion of the Bitcoin distributed within the scope of Mt.Gox refunds may not be sold immediately.
“Of the total 141,000 BTC allocated for Mt.Gox distribution, 65,000 BTC will be delivered to individual creditors and 30,000 BTC will be delivered to demand funds.
“It is reasonable to assume that most of the BTC received by funds receiving claims from creditors will not be sold to LPs, but will be distributed in kind.”
Are Mt.Gox's Bitcoin Refunds Exaggerated?
Apart from Galaxy Research, Swan Bitcoin's senior analyst Sam Callahan also evaluated the impact of Mt.Gox refunds on the BTC price.
Sam Callahan, Mt. Gox refunds may be much less than market watchers fear, he said:
“The impact of Mt. Gox's Bitcoin distribution on the Bitcoin price is probably overstated,” Callahan told CoinDesk. “Creditors who want to sell their Bitcoin now have more than 10 years to do so by selling their bankruptcy claims to more doomed, long-term investors. Additionally, most creditors are likely “They will hold their BTC because their cost basis is less than $700 per Bitcoin,” he said.
Finally, Tagus Capital also Mt. He argued that the actual selling pressure from Gox refunds may have been more measured.
“The exact amount of Mt. Gox refunds to be distributed in July was not specified, but these refunds are part of a larger refund plan that includes 142,000 Bitcoin and 143,000 Bitcoin Cash, as well as fiat currency totaling 69 billion Japanese yen ($432 million).
However, Mt. Gox creditors may hold on to their Bitcoins rather than sell them because they are long-term investors who have resisted previous offers for USD payments and could face capital gains taxes on sales.”
*This is not investment advice.
