Will Mt Gox repayments be as bad for Bitcoin as expected? Analysts comment on the impact of Mt Gox's payments to its creditors on Bitcoin.

.::: NEWS ::::.

Defunct crypto exchange Mt Gox announced the other day that repayments will be initiated in Bitcoin (BTC) and Bitcoin Cash. The company is expected to repay close to $9 billion in BTC.

.::: ANALYSTS' COMMENTS :::::.

Analysts said that the nearly $9 billion in refunds set to begin in July may not affect the price of Bitcoin, but it's hard to say the same for Bitcoin Cash. Bitcoin Cash could experience a big drop during this period.

IG Markets analyst Tony Sycamore told Cointelegraph that historical factors can be looked at to make a concrete prediction about the impact of the upcoming redemptions. Sycamore said he estimates that an average of $4.5 billion worth of BTC could be released starting in July. According to the analyst, not every investor who receives the refund will sell their Bitcoins.

Sycamore suggested that the Mt Gox agenda has already been priced into the cryptocurrency market and that similar effects will not be seen when the sell-off begins. "Paybacks have been coming for a long time," the analyst commented.

The analyst pointed to strong support at the 200-day moving average. In light of this support, a recovery may come in the coming weeks. Sycamore said, "I think we just had a flush. The reason for this volatility is that Mt. Gox sale expectations," Sycamore said.

.::: WHAT HAPPENED ::::.

Mt Gox lost 940,000 BTC after being hacked in February 2014. After the troubled times, the exchange has put 141,687 BTC in the corner to repay creditors. The distribution of these BTC is starting. #Bitcoin #btc #MT.GOX #mtgox