#ChartoftheDay Bankrup crypto lender BlockFi announced in an X post last Wednesday that they will begin the first interim distribution of funds to clients through Coinbase this month.

Previously, the collapsed crypto exchange Mt.Gox got the market’s attention by kicking off a roughly 9 billion-dollar payout plan. On July 5, one of Mt. Gox’s cod wallets transferred 47,229 BTC to an unknown wallet address, of which 1,545 BTC was moved to the hot wallet of Bitbank, one of the crypto exchanges supporting the repayment process. The move, together with the German government’s selling off of BTC, resulted in a single-day drop of over 8% in #BTC☀ price.

According to a notice on July 16, Mt. Gox has distributed to over 13,000 creditors to date in $BTC and BCH. However, according to intelligence firm Arkham Intelligence, Mt. Gox still holds around 138,985 BTC in its main wallet. This means the sell pressure has not set in yet. That said, BTC price has boomed 120x from $485 when Mt. Gox went bankrupt, which means Mt. Gox only needs to use about 20% of its original holding of BTC for repayment. Considering BTC’s long-term potential, it’s highly possible that the holdings will not be sold in total.

If the Mt. Gox payment process lasts more than two months, we don’t expect to see too much one-time sell pressure in the market.

Although BlockFi’s distributions may add extra sell-side pressure to the market, the relatively long distribution process will also mitigate the impact and leave room for recoveries and rallies.