Mt. Gox fees won’t be as bad for Bitcoin as you think: Analysts

Matt Gox's planned payment of $8.5 billion worth of Bitcoin (BTC) to creditors next month may not cause as much of a stir in Bitcoin's price as many expect, analysts say.

Tony Sycamore, an analyst at IG Markets, told Cointelegraph that there are too many historical factors to make a realistic prediction about the impact of the upcoming payment, but that half of the total Bitcoin supply – approximately $4.5 billion – could start in the market in 2018. July.

Mt. Gox was a Japanese cryptocurrency exchange that collapsed after being hacked in February 2014. The exchange lost about 940,000 BTC, which was only $64 million at the time.

Matt Gox has received 141,687 BTC to return to his creditors, which is $8.5 billion as of press time. This sum will begin to be paid to creditors in early July.

Despite the potential flood of Bitcoin on the market, Sycamore has seen much of Mt. Gox said it believes the selling pressure is worth the current market conditions.

“The payments have been coming for a long time,” he said.

“The payouts are happening on the back of declining market sentiment, technical selling and exits from Bitcoin ETFs,” Sycamore said, adding that much of the speculative “hot money” in crypto is left to chase “greener pastures” in mega. Stocks like Nvidia and Apple in the stock market.

While Sycamore spoke broadly of Bitcoin's price action, he did not believe the current selloff could go any deeper. It pointed to strong support at the 200-day moving average for optimism in the coming weeks.

“I think we have water now. “The reason for the leak is that all of these effects will end when Mt Gox is expected to sell,” he said.

I think it would provide a pretty good entry point for those who have been holding on to a better buy rate.

In a June 25 post for X, Galaxy Digital's head of research, Alex Thorne, estimated that only 65,000 of the 141,000 total bitcoins are currently on the market — significantly reducing expected sales activity.

Related: A 4-Week Correction for Bitcoin? Matt Gox, German government steps up selling pressure.

Thorn predicted that approximately 75% of lenders chose to accept an “early” payment, sacrificing 10% of their ongoing payment, and approximately 95,000 BTC were received early in the market.

Additionally, he added that they owe 20,000 BTC of their claim money and about 10,000 BTC to Bitcoinica BK – leaving only 65,000 to go to regular creditors.

Mt. Gox lenders may HODL.

Additionally, Thorne explained, there are many reasons to believe that individual Gox lenders will be more “diamond-handed” than the market expects.

He noted that most lenders are skewed toward being “long-term bitcoiners” who are more likely to hold bitcoin, and that many lenders have for years resisted “compelling and aggressive offers” on claims that offer US dollar payments. They wanted to return their Bitcoin, not fiat.

He also pointed to the impact of the capital gains tax on sellers, where original creditors only received a 15% recovery in kind, while many claimants received a 140-fold profit after the bankruptcy process recovered bitcoin.

Thorn said the selling pressure on Bitcoin Cash (BCH) could be “extremely severe” because many investors never actually bought BCH, only receiving it due to the Bitcoin hard fork that occurred in 2017.

Magazine — Polkadot Indy 500 driver Connor Daly: ‘My dad has a DOT, how crazy is that?'