Bitcoin Price Mt. Gox Falling Due to Fear of Sale, Analysis Company Made a Heartwarming Statement

Bitcoin (BTC) This saw a significant setback on Monday, sending the cryptocurrency market into a sharp decline. Why the trigger? The currently inactive Mt. Gox crypto exchange announced in July that it plans to return more than 140,000 BTC to customers. These customers’ assets were stolen in a famous hack in 2014.

The market is now grappling with the potential impact of over 140,000 BTC expected to flood the market in less than a month. To put that in perspective, that number is slightly less than the immediate liquidation of Fidelity’s spot Bitcoin ETF, which currently holds 167,375 BTC.

But Alex Thorn, Galaxy’s director of research, believes the market may be exaggerating this effect. “We think fewer coins will be distributed than people think, resulting in less BTC selling pressure than the market expects,” Thorn said.

According to Thorn’s research, 75% of creditors are expected to receive an “early” payment in July, which would equate to a distribution of around 95,000 coins. Of those, Thorn estimates 65,000 coins will go to individual creditors. Thorn suggests that these creditors may be more resilient than most expect in terms of sales. Given that Bitcoin has increased 140-fold since the crash, not to mention capital gains taxes, they have already resisted “coercive and aggressive bids from demand funds” for years.

When it comes to demand funds, Thorn suggests that most partners in these funds are high-net-worth individuals looking to increase their Bitcoin holdings at a discount, rather than arbitrageurs looking for a quick and profitable trade. This may further reduce the selling pressure on the market.

As a result, according to analysts, Mt. While the return of Gox BTCs may initially seem like a threat to the market, the actual impact may be less than feared.

*This is not investment advice.