A new report published by market strategists from investment bank and financial services company UBS suggests that the upcoming Mt Gox payouts won’t destabilize Bitcoin’s value. The report states that while new supply will come to the market, it will be less concentrated.

The distribution of 142,000 Bitcoin (BTC) through the current Mt Gox rehabilitation plan is expected to happen around September 2023. Creditors have until March 10 to choose a repayment scheme, and payments are expected to be made in either fiat or crypto.

UBS strategists James Malcom and Ivan Kachkovski explain that the most important decisions creditors will need to make are whether to take an early lump sum payment or wait for further proceedings and additional asset recoveries, and whether to receive funds in fiat or crypto.

While there is still potential for fluctuations in Bitcoin’s value amid the disbursement of Mt Gox Bitcoin, the UBS strategists note that it is difficult to estimate the extent to which the market has been pricing massive sales coming from Mt Gox. However, they think such news could have been an additional factor for what they believe could be mainly retail-led – Bitcoin’s surprising resilience of late.

The 142,000 Bitcoin (BTC) is currently worth more than $3.36 billion using current exchange rates. There is also a stash of 142,000 Bitcoin Cash (BCH) worth over $19 million and $510 million or 69 billion Japanese yen worth of cash.

Users looking to be paid in crypto must sign up and register for a selected centralized crypto exchange to handle the repayment option. Creditors choosing this route need to submit basic KYC/AML information to leverage a crypto exchange to be reimbursed.

The UBS market strategists think that the cause for concern over the upcoming Mt Gox distribution of Bitcoin (BTC) may be a bit overhyped in regard to the long-held fear that Mt. Gox redemptions would hurt Bitcoin’s price. The new report by the investment bank and financial services company should put Bitcoin investors at ease.

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Filed under: Bitcoin - @ March 2, 2023 3:17 pm