Blockchain
What is the future of Bitcoin (BTC) price after the Mt. Gox news
Bitcoin (BTC) is driving cryptocurrency prices sharply lower Monday after the trustee of defunct cryptocurrency exchange Mt. Gox said it will begin returning more than 140,000 BTC in July to customers whose assets were stolen in a 2014 hack.
At the time of writing, bitcoin was trading at $60,700, down more than 5% in the past 24 hours and at its weakest level since early May. Ether (ETH) it was smaller by a similar amount than the larger one CoinDesk 20 Index.
Those selling today are contemplating the impact of more than 140,000 bitcoins hitting the market in less than a month. Putting that number in perspective, it would be just shy of the immediate liquidation of Fidelity’s bitcoin spot ETF, which held 167,375 bitcoins at last check.
“We believe that fewer coins will be distributed than people think and that this will cause less selling pressure on bitcoin than the market expected.” Alex Thorn saidhead of research at Galaxy.
Thorn said his research suggests 75% of creditors will accept “early” payment in July, meaning a distribution of around 95,000 coins. Of these, Thorn believes 65,000 coins will go to individual creditors, but he believes they could prove more “wily” than many expect. One reason, he said, is that they have already resisted “compelling and aggressive offers from claims funds” for years, not to mention the capital gains taxes involved as bitcoin has risen 140-fold since bankruptcy.
Turning to these left-field funds, after speaking with a few, Thorn suggests that the vast majority of those funds’ partners are high-net-worth bitcoiners looking to build their stack at a discount, as opposed to arbitrageurs looking for a quick, profitable trade.