Mt. Is the Gox Effect Exaggerated? A Record Expected for Bitcoin by the End of the Year

Mt. The large-scale sales wave in the crypto market as Gox started paying its creditors led to a daily liquidation of over $665 million.

However, some market makers and investors remain optimistic about Bitcoin's medium-term performance.

A record could be reached by the end of the year

Rich Rosenblum, co-CEO and co-founder of GSR, said the payout was a burden on the third quarter.

Rosenblum: This amount is almost the entire amount of BTC that will be mined in the first year after the halving. "But once digested, there is plenty of time to reach new heights by the end of the year."

May have less impact than expected

Despite the current price pressure, Bitwise President Teddy Fusaro said in his post on the

Fusaro referenced a recent statement by Galaxy Research President Alex Thorn, stating that Thorn predicted “a large portion of BTC will be hodled.”

In his detailed analysis of the issue, Thorn speculated that “fewer coins will be distributed than people think, which will create less Bitcoin selling pressure than the market expects.”

Thorn explained that Mt.Gox lost 940,000 BTC but only regained 141,868 BTC. He added that creditors will have to take a 10 percent cut if they want to get paid now, and a significant portion of those funds will be paid back into the funds.

This means that the total amount that can potentially be released will be less than 141,868 BTC.

Emphasizing that the majority of creditors are early Bitcoin users, Thorn thinks that more people than expected will hold the coin without selling.