CNBC: Most analysts believe that the sell-off related to Mt.Gox is controllable and short-lived
As we enter July, it is expected that in a few days Mt. Gox will begin repaying nearly $9 billion worth of cryptocurrency to thousands of users. As of Monday, the price of Bitcoin remained in the range of $62,000, which means that Mt.Gox users who chose to receive compensation in kind have seen the value of their potential compensation soar by more than 10,000% over the past decade. However, most analysts believe that the impact related to Mt.Gox's sell-off is controllable and short-lived:
1. OKX Chief Business Officer Lennix Lai stated that many early users and creditors of Mt. Gox are long-term Bitcoin enthusiasts who are unlikely to immediately sell all their Bitcoins.
2. CoinShares Research Director James Butterfill said one possible reason for Bitcoin's recent price drop could be new interest rate forecasts from the Federal Reserve; this year Bitcoin has maintained a daily trading volume on credible exchanges at $87.4 billion indicating liquidity sufficient enough to absorb any potential summer sell-offs from Mt.Gox.
3. CCData research analyst Jacob Joseph also believes that market can fully absorb selling pressure; a large portion of creditors may write off 10% off their bonds in order to get paid earlier instead having all bonds liquidated on open market.
4. Galaxy Digital Research Director Alex Thorn pointed out that final number bitcoins compensated by Mt.Gox will be less than people imagine meaning selling pressure would be smaller than market expectations.
5. Gemini APAC Consumer Growth Head Vijay Ayyar suggested overall impact from payment event might "dissipate" given diverse recipients as "large amount" bitcoin would actually go into claim fund pool.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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