Mt. Gox Payout Could Shake Up Bitcoin Market: Analysts
Coingape•4 months ago•
790

Mt. Gox Payout Could Shake Up Bitcoin Market: Analysts

Bitcoin
Mt.Gox
JPMorgan
CoinShares
Crypto
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Summary:

  • Analysts from JPMorgan and CoinShares anticipate a significant market impact from the upcoming $9 billion Bitcoin payout to Mt. Gox creditors.

  • The payout represents about 0.7% of the total Bitcoin supply and could lead to a short-term sell-off as creditors realize profits.

  • JPMorgan analysts predict a potential price dip in July, followed by a rebound from August onwards.

  • Recent Bitcoin selloffs by the German and U.S. governments contribute to a bearish market sentiment.

  • The Mt. Gox repayment is likely to amplify the existing bearish sentiment due to the drop in hashprice and increased miner capitulation.

  • The event could trigger a similar scenario to Gemini's recent return of funds, which caused a negative price movement.

The upcoming payout of approximately $9 billion worth of Bitcoin to creditors of the collapsed exchange Mt. Gox is expected to have a significant impact on the Bitcoin market. Analysts from JPMorgan and CoinShares predict a potential short-term sell-off as creditors might cash out their holdings, causing pressure on Bitcoin prices. The release of this large amount of Bitcoin, representing about 0.7% of the total supply, could trigger a similar scenario to what was seen with Gemini's recent return of funds to users, which led to a negative price movement. JPMorgan analysts expect a potential price dip in July followed by a rebound from August onwards. This anticipation of a sell-off is amplified by recent Bitcoin selloffs by both the German and U.S. governments, further adding to the market uncertainty. The Mt. Gox repayment is expected to contribute to an already bearish sentiment, particularly considering the drop in hashprice and increased miner capitulation.

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