You Can Profit from Mt.Gox Sales: The Giant Company Gave Coins for Long and Short!

Singapore-based trading firm Presto Labs shared its strategy to profit from the selling pressure created by Mt.Gox.

Presto market analysts led by Peter Chung included a noteworthy trading strategy in a note they wrote to CoinDesk on Wednesday, July 11.

Analysts stated that the selling pressure created by Mt.Gox clearly affected the prices negatively and stated that the most profitable transaction that could be made in such an atmosphere would be to open a Bitcoin long position and take a Bitcoin Cash (BCH) short position.

Mt. Gox's team plans to distribute billions of dollars worth of Bitcoin and Bitcoin Cash between July 1 and October 31, 2024.

Mt. Gox will refund 143,000 BCH worth approximately $73 million in addition to the approximately $9.5 billion BTC it will refund to customers.

Selling pressure for Bitcoin Cash will be 4 times greater

Analysts noted that with the distributions to be made, the sales pressure on Bitcoin Cash will be 4 times higher than on Bitcoin.

Our analysis shows that selling pressure for Bitcoin Cash will be four times greater than for Bitcoin; that is, 24% of the daily transaction value for Bitcoin Cash and 6% of the daily transaction value for Bitcoin. Long Bitcoin perpetual contracts paired with short Bitcoin Cash perpetual contracts were the most effective market-neutral way to express this view, other than funding rate risk.

Recently, a Presto Labs executive visited Mt. He said that Gox refunds could create greater selling pressure in Bitcoin Cash rather than Bitcoin.