After the Mt. Gox exchange announced yesterday (24th) that it would begin repaying creditors in early July, the decline of Bitcoin (BTC) further intensified, once falling below the $60,000 mark this morning. The market seems concerned that a large amount of Bitcoin may be about to flow into the market.
Mt.Gox, an early cryptocurrency exchange, declared bankruptcy in 2014 after losing 850,000 bitcoins to a hacker attack. According to data compiled by on-chain intelligence platform Arkham, Mt. Gox wallets hold a total of approximately 141,000 Bitcoins (valued at $8.7 billion). However, digital asset investment company Galaxy believes that the actual number of coins distributed by Mt. Gox may be less than most people expect, and as a result, the selling pressure on the market will also be smaller than the market expects.
Source: Alex Thorn
Alex Thorn, head of Galaxy's research department, said on the 20,000 BTC are owed to debt funds, about 10,000 BTC are owed to Bitcoinica BK, and the remaining 65,000 BTC will be distributed to individual creditors.
Thorn believes these individual creditors may be more "diamond-minded" than most expect, in part because they have resisted years of compelling and aggressive offers from debt funds, let alone Given that Bitcoin has risen 140-fold since the bankruptcy, there are capital gains taxes involved.
But Thorn also said that despite this, even if only 10% of the 65,000 Bitcoins are sold, 6,500 BTC (approximately worth $398 million) will be dumped on the market, and it is likely to be sold on the market. As for those debt funds, Thorn said after discussions with some funds that the vast majority of fund partners are high-net-worth Bitcoin holders who want to buy Bitcoin at a discount, rather than arbitrageurs looking for quick profitable transactions. .
Mt.Gox will repay the money in the form of Bitcoin and Bitcoin Cash (BCH). Thorn believes that once these coins are distributed, the relative performance of BCH will be worse than that of BTC, and creditors will sell a larger part of the coins to less liquid currencies. Bad BCH market.
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Related reports: "Mt. Gox announced that it will repay creditors in BTC and BCH starting in early July"
This article Mt.Gox repayment caused market concerns, Galaxy Research Director: Bitcoin selling pressure will be smaller than market expectations first appeared on Zombit.
