The upcoming payouts to Mt.Gox bankrupt clients are not a reason to worry about the stability of the price of the first cryptocurrency. Writes about it The Block with reference to UBS analysts.
The creditors of the exchange must decide before March 10 in what form and in what period they agree to receive compensation.
UBS strategist Ivan Kaczkowski explained that the option of early payment of the lump sum in fiat will lead to sales of the first cryptocurrency. This may confirm the “long-standing fear that the Mt.Gox redemption will hurt the price of bitcoin.”
He recalled that the trustee in the process managed to restore access to 142,000 BTC, 143,000 BCH, 69 billion Japanese yen (~ $ 505,000) – “~ 20% of the hack.”
The specified volume in the first cryptocurrency is equivalent to 16% of its daily turnover.
“The amount may seem insignificant – it would be about 90% of the average supply volume active during the last day, 28% for the last week and 10% for the last month”the expert calculated.
As the active supply grows, other things being equal, the risks of lowering the price of the asset grow, the strategist explained.
Kaczkowski questioned the appearance on the stock exchange of the entire amount of compensation received by affected clients. The specialist suggested that most of them are probably hodlers.
The specialist referred to recent media information, according to which the two largest exchange lenders with 20% of the requirements have chosen to pay out in cryptocurrency.
While other lenders may step up selling pressure, their actions will be “less concentrated,” the strategist added.
“It is certainly difficult to assess to what extent the market has factored in the sale price of Mt.Gox customers. However, we think such news could be an additional factor in BTC’s amazing resilience of late.»Kaczkowski concluded.
Once the largest bitcoin exchange, Mt.Gox, crashed in early 2014. This happened after information appeared about her alleged hack and theft of 800,000 BTC ($480 million at the time).
The process of reimbursement of funds to creditors was launched in 2018. Since then, many in the community have raised fears that around 150,000 BTC (~$3.6 billion at the time of writing) that will potentially be transferred to exchange users will enter the market and cause it to crash.
Recall that the trustee of Mt.Gox Nobuyaki Kobayashi began preparations for the payment of compensation in July 2022.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
The upcoming payouts to Mt.Gox bankrupt clients are not a reason to worry about the stability of the price of the first cryptocurrency. Writes about it The Block with reference to UBS analysts.
The creditors of the exchange must decide before March 10 in what form and in what period they agree to receive compensation.
UBS strategist Ivan Kaczkowski explained that the option of early payment of the lump sum in fiat will lead to sales of the first cryptocurrency. This may confirm the “long-standing fear that the Mt.Gox redemption will hurt the price of bitcoin.”
He recalled that the trustee in the process managed to restore access to 142,000 BTC, 143,000 BCH, 69 billion Japanese yen (~ $ 505,000) – “~ 20% of the hack.”
The specified volume in the first cryptocurrency is equivalent to 16% of its daily turnover.
“The amount may seem insignificant – it would be about 90% of the average supply volume active during the last day, 28% for the last week and 10% for the last month”the expert calculated.
As the active supply grows, other things being equal, the risks of lowering the price of the asset grow, the strategist explained.
Kaczkowski questioned the appearance on the stock exchange of the entire amount of compensation received by affected clients. The specialist suggested that most of them are probably hodlers.
The specialist referred to recent media information, according to which the two largest exchange lenders with 20% of the requirements have chosen to pay out in cryptocurrency.
While other lenders may step up selling pressure, their actions will be “less concentrated,” the strategist added.
“It is certainly difficult to assess to what extent the market has factored in the sale price of Mt.Gox customers. However, we think such news could be an additional factor in BTC’s amazing resilience of late.»Kaczkowski concluded.
Once the largest bitcoin exchange, Mt.Gox, crashed in early 2014. This happened after information appeared about her alleged hack and theft of 800,000 BTC ($480 million at the time).
The process of reimbursement of funds to creditors was launched in 2018. Since then, many in the community have raised fears that around 150,000 BTC (~$3.6 billion at the time of writing) that will potentially be transferred to exchange users will enter the market and cause it to crash.
Recall that the trustee of Mt.Gox Nobuyaki Kobayashi began preparations for the payment of compensation in July 2022.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
