A popular crypto analyst is shining light on the possible impact of the upcoming Mt.Gox bankruptcy payments on the value of Bitcoin (BTC).
The now-defunct Mt. Gox collapsed in 2014 after it was hit by an attacker who stole 850,000 Bitcoin worth about $500 million at the time.
Mt. Gox’s trustee announced in July that the defunct exchange was planning to soon make repayments to former customers in accordance with its bankruptcy rehabilitation plan, stoking fears that BTC could flood the crypto market.
But the pseudonymous host of the YouTube show Coin Bureau says he doesn’t think the repayments will have a big impact on Bitcoin’s price.
“A lot of people are worrying that this could create a lot of sell pressure which would obviously drive crypto prices lower. Now, I personally don’t think this is too much of a problem, at least it’s certainly not anything that I’m particularly worried about.
And there a couple of reasons for this. Firstly, I’m pretty sure that a lot of that BTC was bought quite a while ago by institutions, whales, other high-net-worth investors, for probably pennies on the dollar from those Mt. Gox users. So when that BTC does finally get unlocked, it will actually already have been bought by those other entities.”
The analyst also believes the majority of the holders will choose to hold onto their BTC since Bitcoin is so far below its all-time high. He predicts the market will endure “a little bit of sell pressure,” but not a concerning amount.
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