Bankrupt cryptocurrency exchange Mt. Gox has begun paying down its debt in Bitcoin and Bitcoin Cash. According to financial analyst Jacob King, this could have a significant impact on the market, predicting a selling pressure of as much as $8.2 billion on the price of Bitcoin.
Mt. Gox Bitcoin Sale Could Drive Prices Down Further
King states that the Mt. Gox refunds will largely be sold on the market, which is expected to further drive down Bitcoin prices. “No Bitcoiner will say this out loud, but the majority of the $8.2 billion in BTC that will be returned to former customers will be sold,” King wrote in a July 4 post.
This dire prediction comes just hours after Mt. Gox officially announced its repayment process on July 5. On-chain movements already indicate that Mt. Gox creditors have begun selling, analysts say.
Will Mt. Gox Send Bitcoin Back to Bear Market?
The predictions raise concerns about Bitcoin’s price, which has struggled to rise for over a month and is currently below the psychological $60,000 barrier.
Throughout the month of June, Bitcoin was in a downtrend, losing over 21% of its value in a month.
However, according to the analyst, the sale of Bitcoin by Mt. Gox creditors could make the situation much worse and send Bitcoin back into a bear market:
I understand this is controversial, but given the current low demand volume this will easily send BTC back into a hard bear market.
Mt. Gox Refunds Positive Development for Industry and Users
Despite the potential selling pressure, the redemptions are a positive development for both the industry and the former users of the failed exchange. This sentiment is shared by Mark Karpelès, the former CEO of Mt. Gox, who wrote in an X post on July 5:
“Mt. Gox customers are finally starting to receive Bitcoins! After 10+ years I wasn’t sure if it would ever happen, but here we are!! It’s been a long journey and I’m happy to see that we’re finally almost there, just a little while longer.”
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Source: https://newsbit.nl/crypto-analist-99-van-de-82-miljard-aan-bitcoin-van-mt-gox-zou-kunnen-worden-verkocht/
