MtGox Repayment Triggers Market Concerns Galaxy Research Director Bitcoin Selling Pressure to be Less than Expected

MtGox Repayment Triggers Market Concerns Galaxy Research Director Bitcoin Selling Pressure to be Less than Expected

MtGox Repayment Triggers Market Concerns Galaxy Research Director Bitcoin Selling Pressure to be Less than Expected

Mt.Gox announced yesterday (24th) that the downward trend of Bitcoin (BTC) intensified further after announcing the repayment to creditors in early July, falling below $60,000 this morning. The market seems to be concerned about the possibility of a large amount of Bitcoin entering the market.

Mt.Gox, an early cryptocurrency exchange, declared bankruptcy in 2014 after losing 850,000 bitcoins due to a hacker attack. According to data compiled by the online intelligence platform Arkham, Mt.Gox’s wallet holds approximately 141,000 bitcoins (valued at $8.7 billion). However, the digital asset investment company Galaxy believes that the actual distribution of coins from Mt.Gox may be less than what most people expect, resulting in smaller selling pressure on the market.

Source:
Alex Thorn
Alex Thorn, head of research at Galaxy, stated on the X platform that his research indicates that approximately 75% of creditors have chosen “early” repayment, meaning that around 95,000 bitcoins will be allocated to creditors. Of these, approximately 20,000 are owed to the creditor fund, about 10,000 are owed to Bitcoinica BK, and the remaining 65,000 BTC will be distributed to individual creditors.

Thorn believes that these individual creditors may be more inclined to “diamond hands” (referring to holding steadfastly) than most people expect, partly because they have resisted the attention-grabbing and aggressive offers from the creditor fund for many years, not to mention the capital gains tax implications involved in Bitcoin’s 140-fold increase since the bankruptcy.

However, Thorn also indicated that even if only 10% of these 65,000 bitcoins are sold, 6,500 BTC (approximately valued at $398 million) will be sold on the market, and most likely will be sold on the market. As for those creditor funds, Thorn stated after discussions with some funds that the vast majority of fund partners are high net worth Bitcoin holders who seek to purchase Bitcoin at a discounted price rather than seeking quick profit through arbitrage trading.

Mt.Gox will repay in the form of Bitcoin and Bitcoin Cash (BCH). Thorn believes that once these coins are distributed, BCH’s relative performance will be worse than BTC, and creditors will sell a larger portion of coins in the less liquid BCH market.

Source:
Related report: “Mt.Gox announces repayment to creditors in the form of BTC and BCH starting from early July”