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Analyst: Mt.Gox pressure on BTC is not as strong as commonly believed

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.

“Creditors who wanted to sell their coins for ten years had the opportunity to do so by selling their bankruptcy claims. […] In addition to this, most clients will likely hold on to their bitcoins because their acquisition cost is less than $700 per BTC,” the specialist commented.

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.

“We can assume that most of the bitcoins received by the funds will be distributed among shareholders in kind, and not sold. As a result, initial pressure may come from individual creditors (64,697 BTC),” the experts emphasized.

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).

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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