expect the Mt. Gox repayment plan to lead to some heavy selling in bitcoin<\/span>, although this is likely to be short-lived and precede further price gains later this year and in early 2025.<\/p>\nJohn Glover, chief investment officer of crypto lending firm Ledn, told CNBC the windfall for Mt. Gox users would likely translate to huge sales in bitcoin as investors look to lock in gains.<\/p>\n
“Many will clearly cash out and enjoy the fact that having their assets stuck in the Mt. Gox bankruptcy was the best investment they ever made,” said Glover, who was previously a managing director at Barclays. “Some will clearly choose to take the money and run,” he said in emailed comments.<\/p>\n
JPMorgan analysts said in a note last month that they expect Mt. Gox customers to sell some of their bitcoin to profit from seismic gains for the cryptocurrency.<\/p>\n
“Assuming most of the liquidations by Mt. Gox creditors take place in July, [this] creates a trajectory where crypto prices come under \u2026 pressure in July, but start rebounding from August onwards,” they wrote.<\/p>\n
Ultimately, the total sum owed to creditors \u2014 some 140,000 bitcoins \u2014 accounts for roughly 0.7% of the total 19.7 million bitcoin currently in circulation.<\/p>\n
Analysts say this means that even though it is likely to affect prices, there is enough liquidity available to cushion the blow of any intense sell-off.<\/p>\n
James Butterfill, head of research at CoinShares, told CNBC that the billions of dollars worth of bitcoin being traded on trusted exchanges daily this year suggests that “liquidity is sufficient to absorb these sales over the summer months.”<\/p>\n
Jacob Joseph, research analyst at CCData, echoed that point, saying the markets are more than capable of absorbing the selling pressure.<\/p>\n
“Moreover, a healthy part of the creditors are likely to take a 10% haircut on their holdings to receive the repayment early, and not all holdings are set to be liquidated on the open market, reducing the overall selling pressure,” he told CNBC by email.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Thomas Trutschel | Photothek | Getty Images The trustee for Mt. Gox, the Japanese bitcoin exchange that collapsed into bankruptcy a decade ago, on Friday said the company has begun to make payments in bitcoin and in bitcoin cash to some of its creditors. The announcement added that repayments to other users of the hacked exchange would …<\/p>\n","protected":false},"author":1,"featured_media":25897,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"class_list":["post-25896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25896"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=25896"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/25897"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=25896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=25896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=25896"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=25896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}