Associated with the distribution of Mt. Gox bearish pressure may be less than market participants expect. Sam Callahan from Swan Bitcoin shares this opinion, writes CoinDesk.
On June 24, Bitcoin fell below the $60,000 level after Mt.Gox’s trustee announced plans to begin paying compensation in July. The bankruptcy trustee is expected to distribute its assets at 142,000 BTC, 143,000 BCH and 69 billion yen.
The decision was made against the backdrop of the completion of the preparatory process – providing technical support, complying with the rules in each country and coordinating transfers with each crypto exchange.
In January, Mt.Gox confirmed the addresses for compensation, and in April it updated the data.
In May, Galaxy Digital estimated at 75% the share of coins returned by the platform trustee, the owners of which preferred to receive an early payment in kind at a discount.
While the market may believe that almost all of the 141,868 BTC will go into circulation this year, analysts believe the amount will be significantly less. It is expected that 64,697 BTC will go to individual creditors, and another 30,000 BTC to claim funds and participants in a separate bankruptcy.
Galaxy’s head of research, Alex Thorne, separately clarified that 20,000 lenders from a pool of almost 65,000 BTC are early adopters of digital gold, who have historically held it (11% of the supply has not moved for more than five years).
~25K BTC from Mt Gox has moved in the last hour, likely the beginning of distributions to creditors
i sent a note to GLXY clients & counterparties a couple weeks ago with estimated payout amounts
i personally expect most BTC gets hodl’d, but i can’t say the same for the BCH pic.twitter.com/0f0LWOqGtc
— Alex Thorn (@intangiblecoins) May 28, 2024
According to the expert, the majority in this category purchased Bitcoin at $451 or below – they remained holders despite several bear markets over the course of a decade.
He also highlighted the capital gains tax implications as the asset has grown by at least 1,400% since then.
Against the backdrop of news from Mt.Gox, the digital gold dominance index fell at the fastest rate in the last five months – by 1.8%, to 54.34%.
Source: Cryptocurrency
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