As the defunct cryptocurrency exchange Mt. Gox prepares to distribute around $9 billion worth of Bitcoin, some investors are worried about the potential impact on prices. However, industry experts and major creditors believe that any short-term volatility will be outweighed by BTC’s long-term bullish prospects.
With the approval of US spot Bitcoin exchange-traded funds (ETFs), many market experts anticipate that the market will absorb the newly available tokens.
Bitcoin Optimism Among Market Participants
As reported by our sister website, Bitcoinist, Mt. Gox’s Japanese trustee, Nobuaki Kobayashi, recently announced plans to start distributing Bitcoin and Bitcoin Cash to creditors.
The process is expected to commence shortly, with most claimants set to receive their tokens before the end of October. However, concerns have emerged regarding the impact of this large-scale distribution on Bitcoin’s price.
According to Bloomberg, significant creditors and long-time market participants remain confident in Bitcoin’s resilience despite concerns. Many intend to retain the distributed coins, anticipating continued price appreciation.
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Adam Back, CEO of blockchain technology company Blockstream and a creditor himself, emphasizes the “illogicality” of selling at the beginning of a potential bull market. Back suggests that waiting further, after a decade-long wait, could yield even greater returns.
According to the firm’s CEO Brian Dixon, other creditors, such as Off the Chain Capital, plan to sell Bitcoin only when “better investment opportunities arise,” recognizing Bitcoin’s historical performance as the best-performing asset in recent years.
Dixon further highlights the significant maturation of the Bitcoin market since Mt. Gox’s bankruptcy. He argues that the potential impact of the distribution, although substantial in volume, is unlikely to have a lasting effect on prices.
Cosmo Jiang, a portfolio manager at Pantera Capital, notes that while the amount is significant, the distribution will occur over an extended period, making it less actionable regarding market impact. With around $26.6 billion in daily Bitcoin trading, the distributed tokens are expected to be absorbed without major disruption.
BCH Sales In Mt. Gox Distribution?
Creditors do not anticipate a simultaneous distribution of tokens to all claimants. Instead, they expect the trustee to distribute the coins in tranches,…
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