WOO X COO: Short-term panic is expected, but in the long run, negative factors such as Mt.Gox will gradually dissipate
In response to the sharp drop on July 5, WOO X COO Willy Chuang said that Mt.Gox's transfer of 47,228 BTC marked that they had begun to repay, which triggered some panic in the market and caused a potential large-scale sell-off. In addition, various factors including the German government's BTC sell-off, the Federal Reserve's problems, and the uncertainty of the US election also exacerbated this panic.
However, it is worth noting that the long-term impact of these events may be mitigated as the market gradually absorbs the selling pressure. According to the 2023 Mt.Gox data report, the exchange's actual sell-off is much smaller than the total holdings, because many creditors have sold their claims due to the long compensation cycle, so these claims are mainly held by institutional entities, and 226 creditors hold more than 50% of Mt.Gox's claims. Short-term market panic is expected, but in the long run, these negative factors may gradually dissipate.
