PANews reported on June 27 that according to The Blcok, the bankrupt cryptocurrency exchange Mt.Gox recently announced that it will begin distributing bitcoin repayments to creditors next month, totaling about 142,000 bitcoins, worth about $9 billion at current prices. Analysts at JPMorgan Chase expect that the market may be under pressure in the short term as creditors may sell some bitcoins to recover funds. However, analysts also pointed out that the cryptocurrency market may gradually recover after August as the market adapts and digests.
Meanwhile, creditors of another bankrupt crypto exchange, FTX, are also expected to receive repayments in cash in the coming months, with a total estimated at between $14 billion and $16 billion. Unlike the in-kind repayments of Mt. Gox and Gemini, FTX's repayments will be in cash, which will help directly increase market liquidity. Analysts believe that these cash repayments may be reinvested into the market by cryptocurrency-native creditors, further supporting the recovery of the cryptocurrency market.
However, analysts also warned that there may be a gap of about three months between the possible liquidation of Mt. Gox creditors and the reinvestment of FTX creditors, which may bring some uncertainty to the market. Especially in July, when Mt. Gox creditors begin to liquidate, the cryptocurrency market may face further pressure. But in the long run, with the reinvestment of FTX creditors, the market is expected to gradually return to stability.
Last month, creditors of Gemini Earn products have received digital assets worth $2.18 billion. Considering the recent volatility in the cryptocurrency market, JPMorgan analysts speculate that some creditors may have sold some or all of these assets in the near future for a profit.
