Bitcoin Sell-Off Triggered by Mt. Gox Will Be Less Than Expected: Galaxy Research Chief

On June 24th, Alex Thorn, Head of Research at Galaxy, stated on the X platform that the final distribution of tokens from the Mt. Gox bankruptcy case will be lower than anticipated, resulting in a smaller than expected Bitcoin sell-off.

Key Points:

Mt. Gox Losses: Mt. Gox lost approximately 940,000 Bitcoins back in the day, valued at $424 million at the time.Recovered Bitcoins: As of now, about 15% of these Bitcoins have been recovered, amounting to 141,868 Bitcoins.

Expected Distribution:Around 95,000 Bitcoins are expected to be used for claim settlements.Approximately 20,000 Bitcoins will be allocated to the claim fund.About 10,000 Bitcoins will be distributed to Bitcoinica BK.

Only 6,500 Bitcoins will be distributed to individual creditors, a figure significantly lower than the previously reported 141,868 Bitcoins.

Analysis:

Thorn's analysis indicates that the actual number of Bitcoins distributed as compensation will be much lower than market expectations. This reduced number of distributed tokens suggests that the potential sell-off pressure on Bitcoin due to Mt. Gox will be less impactful than previously feared.

Implications for Investors:

This development could alleviate some concerns about a significant Bitcoin price drop due to Mt. Gox's settlement, potentially stabilizing investor sentiment in the market.