The majority of Bitcoin held by defunct exchange Mt. Gox to repay creditors will likely be sold, putting further downward pressure on Bitcoin.

According to financial analyst Jacob King, the return of Mt. Gox could add another $8.2 billion in selling pressure to the Bitcoin price, with onchain moves already pointing to the fact that Mt. Gox has begun selling. 

“No Bitcoiner is saying this, but the majority of the $8.2B BTC distributed to Mt.Gox creditors will be sold.”

This gloomy prediction comes hours after Mt. Gox began refunding in Bitcoin and Bitcoin Cash on July 5, sparking concerns about the price of Bitcoin, which has struggled to gain momentum over the past month and is currently trading below the psychological $60,000 level la.

Source: TradingView

Bitcoin has been trending down for the entire month of June, recording a loss of nearly 18% in Q2 2024.

According to the analyst, selling pressure from creditors of Mt. Gox Likely to Return Bitcoin to a Bear Market:

“I understand this is controversial, but based on current low demand volumes, this will easily send BTC back into a harsh bear market.”

Despite the potential selling pressure, the refund is a positive development for the industry and users of the defunct exchange. This view is expressed by Mark Karpelès, former CEO of Mt. Gox, as Bitcoin Magazine reported.

Up to 99% of Mt. Gox can sell

About 127,000 creditors of Mt. Gox is waiting to be refunded more than $9.4 billion in Bitcoin after having to wait more than 10 years.

Considering that the price of Bitcoin has increased more than 8,500% in the past 10 years, the majority of bankrupt creditors will likely be looking to take profits.

This is also part of the reason why King believes that about 99% of creditors will sell their BTC.

“I think 99% of Mt. Gox will sell their coins immediately upon receipt. Imagine billions of dollars of Bitcoin gradually being sold off over the next few weeks. There is no way to turn this into optimism, or any news that can compensate for this.”



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