Mt.Gox plans to repay $8.5 billion worth of Bitcoin, and IG Markets analyst Tony Sycamore said that the repayment of loans to creditors next month may not have as much impact on Bitcoin prices as many people expect. There are too many historical factors to make specific predictions about the impact of the upcoming repayments, but it is estimated that about half of the Bitcoin (worth about $4.5 billion) may begin to enter the market in July.
Sycamore said he believes that a large part of the so-called Mt. Gox selling pressure is already reflected in the current market conditions. The repayment has been going on for a long time. The repayment is happening against the backdrop of deteriorating market sentiment, technical selling and outflows from Bitcoin ETFs. Most of the speculative "hot money" in the cryptocurrency field has left to chase the "broader world" of giant stocks such as Nvidia and Apple in the stock market.
In addition, when it comes to Bitcoin's price action, Sycamore said he does not believe the current sell-off will fall further. He pointed to the strong support of the 200-day moving average as a reason to remain optimistic in the coming weeks.