The post Analyst predicts limited impact from Mt. Gox Bitcoin distribution amid market slide appeared on BitcoinEthereumNews.com.

Galaxy’s head of research, Alex Thorn, believes the impending distribution of more than 140,000 Bitcoin (BTC) from the defunct Mt. Gox exchange will have a less severe market impact than anticipated. Thorn said his research shows that the selling will mostly come from individual creditors, who are receiving less than half of the total 140,000 Bitcoin. He also argued that most individual creditors have been around Bitcoin since the early days and are unlikely to sell. According to Thorn: “Creditors are significantly skewed towards long-term Bitcoiners. They are tech-savvy early adopters… [who] resisted years of compelling & aggressive offers from claims funds, suggesting they want their coins back rather than a USD-denominated payout.” Bitcoin led a broad decline in crypto prices on Monday after the trustee for the defunct Mt. Gox exchange announced plans to begin returning more than 140,000 BTC to clients starting in July. The assets were stolen in a high-profile hack in 2014. As of press time, the flagship crypto was trading a little above $59,000, down over 7.5% in the past 24 hours, marking its lowest level since early May. Ethereum (ETH) and the broader altcoin market experienced similar declines. Mt. Gox concerns The sliding market was spooked by concerns about the impact of a large influx of Bitcoin hitting the market in less than a month. To put it in perspective, the anticipated distribution of 140,000 BTC is slightly less than the total holdings of Fidelity’s spot Bitcoin ETF, which recently held 167,375 BTC. However, Thorn believes the fear is being blown out of proportion as the individual creditors — that are expected to sell — will only receive 65,000 BTC rather than 140,000 Bitcoin. He wrote: “We think fewer coins will be distributed than people think and that it will cause less bitcoin sell pressure…

---

Filed under: News - @ June 25, 2024 3:10 am