Market Analysis: Will Mt. Gox's Bitcoin Distribution Impact Crypto Prices?
Some investors worry about Bitcoin pricing after Mt. Gox distributes $9 billion worth of Bitcoin. Industry experts and large creditors think BTC's long-term optimistic potential will overcome its short-term volatility.
After US spot Bitcoin ETFs are approved, many market professionals expect the market to absorb the new tokens.
Nobuaki Kobayashi, Mt. Gox's Japanese trustee, revealed intentions to distribute Bitcoin and Bitcoin Cash to creditors,
Most applicants should get tokens by October. However, Bitcoin's price may be affected by this large-scale dispersion.
Despite worries, major creditors and long-time market players believe Bitcoin will survive, Bloomberg reports. Many want to keep the allocated coins for price appreciation.
Adam Back, CEO of blockchain technology startup Blockstream and a creditor, calls selling early in a bull market “illogical”. After a decade, Back shows waiting longer may provide better profits.
CEO Brian Dixon says other creditors, such Off the Chain Capital, would sell Bitcoin only when “better investment opportunities arise,” citing Bitcoin's recent success as the best-performing asset.
Dixon emphasizes the Bitcoin market's maturity following Mt. Gox's collapse. Despite its magnitude, he believes the distribution will not affect pricing.
Pantera Capital portfolio manager Cosmo Jiang says the sum is large, but the distribution will take time, making it less market-actionable. Distributed tokens should be absorbed without disturbance due to $26.6 billion in daily Bitcoin trade.
Mt. Gox BCH Sales in Distribution?
Creditors don't expect the same token allocation to all claims. Instead, they anticipate the trustee to issue coins in tranches, maybe favoring earlier claims. This may reduce immediate market pressure.
Galaxy Research forecasts that credit funds with 20,000 BTC will not sell large amounts. Their limited partners (LPs) should get Bitcoin in kind.
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