Mt. Traders believe the selling pressure from Gox payments may be less than expected, easing concerns of an immediate selloff. Galaxy Research suggests that a significant portion of distributed Bitcoin may not be sold immediately, most will likely be held by creditors due to the low-cost basis. 🚀
"The impact of Mt. Gox's Bitcoin distribution on the price of Bitcoin is likely exaggerated," said Sam Callahan, senior analyst at Swan Bitcoin. “Creditors who want to sell their Bitcoin now have more than 10 years to do so by selling their bankruptcy claims to more convincing, long-term investors.
Additionally, most creditors will likely keep their Bitcoins because the cost basis is below $700 per Bitcoin,” he said.
Galaxy Research stated in a note on Monday that 65,000 BTC of the total 141,000 BTC will be delivered to individual creditors, while the other 30,000 BTC will be delivered to claim funds and a separate bankruptcy.
“It is a reasonable assumption that most of the BTC received by funds purchasing claims from creditors will be distributed to LPs and not sold,” the firm said, easing concerns.
Expectations of impending selling pressure pushed Bitcoin down more than 4% on Monday, briefly pushing it below $60,000 for the first time since early May.
So what do you think? We are waiting your comments! 🤔👇#DeFi#Web3#crypto#bitcoin