Analysts Assess the Impact of Mt.Gox Refunds on Bitcoin Price! “It’s Overrated!”
Experts have analyzed the potential influence of Mt.Gox’s reimbursements on the price of Bitcoin, suggesting that it may not be as significant as initially anticipated.
Bitcoin began the week with a decline, but its value took another hit due to a recent development in the Mt.Gox incident, commonly known as the Bitcoin nightmare.
This decline can be attributed to concerns about the potential selling pressure that will arise from Mt.Gox refunds, but analysts believe that this selling pressure may not be as severe as expected.
Galaxy Research, for instance, argues that a substantial portion of the Bitcoins distributed as part of the Mt.Gox refunds may not be immediately sold. They state, “Out of the total 141,000 BTC allocated for Mt.Gox distribution, 65,000 BTC will be delivered to individual creditors, and 30,000 BTC will be allocated to fund demands. It is reasonable to assume that most of the BTC received by the funds will not be sold, but rather distributed as assets to the creditors.”
Swan Bitcoin’s senior analyst, Sam Callahan, also shares a similar perspective on the impact of Mt.Gox refunds on the Bitcoin price. According to Callahan, the anticipated impact on the Bitcoin price is likely exaggerated. He explains, “Creditors who wish to sell their Bitcoin now have over 10 years to do so by selling their bankruptcy claims to long-term investors. Furthermore, most creditors are likely to hold onto their BTC due to their cost basis being less than $700 per Bitcoin.”
Tagus Capital also suggests that the actual selling pressure from Mt.Gox refunds may be more moderate. While the exact amount of refunds to be distributed in July has not been specified, these refunds are part of a larger plan that includes 142,000 Bitcoin, 143,000 Bitcoin Cash, and fiat currency totaling 69 billion Japanese yen ($432 million). However, Mt.Gox creditors may choose to retain their Bitcoins instead of selling them, as they are long-term investors who have previously rejected offers for USD payments and may face capital gains taxes if they sell.
Please note that this article does not provide investment advice.
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