Selling pressure continues to create uncertainty in the Mt.Gox BTC price, which will begin Bitcoin (BTC) and Bitcoin Cash (BCH) refunds in July.
At this point, some analysts think that users who receive BTC and BCH within the scope of Mt.Gox refunds may sell, while others think that Mt.Gox payments will have less impact on the price than expected.
Because these analysts do not expect users to sell BTC immediately.
Finally, JP Morgan analysts also shared their expectations on this subject.
According to The Block, JP Morgan analysts say Mt. Gox expects its creditors to sell some of their Bitcoin claims next month. According to analysts, this has the potential to initially put pressure on Bitcoin and the crypto market.
Even if JP Morgan analysts expect a selling pressure in BTC from Mt.Gox, they expect the price to potentially recover starting from August.
JPMorgan analysts led by Nikolaos Panigirtzoglou wrote:
“Going forward, a downside risk emerges for Mt. Gox creditors in July.
Although October is the deadline, we believe most refunds will occur in July.
At this point Mt. “Assuming that most liquidations of Gox creditors will occur in July, this suggests a trajectory where crypto prices come under further pressure in July but begin to recover from August onwards.”
FTX Can Compensate for the Negative Impact of Mt.Gox on Bitcoin!
While possible sales for Mt.Gox are being discussed, analysts expect the creditors of the bankrupt cryptocurrency exchange FTX to receive their repayments in the next few months and stimulate the market with the cash payments they receive.
According to analysts, after these refunds from FTX, creditors could possibly support crypto markets by reinvesting their funds into crypto.
Because FTX refunds Mt. Gox will issue refunds in cash rather than in kind.
“While in-kind payments create liquidation risk as some creditors sell for profit, cash payments create positive flow momentum as most crypto creditors decide to reinvest their cash into crypto assets.
The problem for crypto markets is that Mt. Gox potential creditor liquidations in July and FTX creditor reinvestments in October/November.”
*This is not investment advice.
