Happycoin.club - According to Peter Zhong, an analyst at quantitative trading company Presto Research, which creates automated trading systems, paying compensation to clients of Mt. Gox and the resulting release of liquidity into the market will significantly impact Bitcoin Cash (BCH) holders.
The payments will be made between July and October, amounting to almost 142,000 BTC and BCH, which, according to the expert, will give Mt. creditors. Gox the ability to open long positions on BTC and short positions on BCH.
Zhong believes that the weaker investor base around BCH will result in 100% of the BCH allocated to lenders being sold in the near future. As for Bitcoin, given the attitude towards this asset, former Mt Gox clients are selling only a limited amount of BTC.
As for BTC, it will only be sold in small quantities, given that most of these lenders are wealthy people with “diamond hands,” Zhong emphasized.
Additionally, the fact that the Bitcoin Cash fork occurred three years after the collapse of Mt. Gox means they are “more likely to treat their BCH received the same way any degen traders would treat an airdrop,” meaning they will immediately cash out. Selling pressure is expected to be four times higher for BCH than for BTC, given the former asset's lower market trading volumes.
Zhong believes this unique injection of liquidity into the market could give traders the opportunity to profit by taking advantage of upcoming market fluctuations in the coming months.
