Bitcoin is under significant pressure as it dips below $59,000 due to the announcement of major repayments by the Mt. Gox trustee. The trustee plans to distribute over 140,000 BTC to clients affected by the 2014 hack, raising concerns about the potential market impact of this influx of Bitcoin.
Currently trading at $60,700, Bitcoin has experienced a significant drop, reaching its lowest point since early May. Alex Thorn from Galaxy suggests that the actual number of distributed bitcoins may be lower than expected. According to his research, only about 95,000 coins will be released initially, with 65,000 going to individual creditors who are likely to hold onto their assets instead of selling immediately.
This group of creditors has a history of resisting selling, despite lucrative offers, due to the substantial increase in Bitcoin’s value since the hack and the associated capital gains taxes. Thorn also points out that most partners in claims funds are long-term Bitcoin investors, indicating that the selling pressure may not be as severe as feared.
Thorn’s research suggests that 75% of creditors will choose the “early” payout in July, resulting in a distribution of around 95,000 coins. He believes that while 65,000 coins will go to individual creditors, they may prove to be more resilient than expected. Their resistance to years of compelling offers and the capital gains taxes involved, considering Bitcoin’s 140-fold increase since the bankruptcy, indicate that the impact on Bitcoin’s price may be smaller than anticipated.
As of today, Bitcoin trades at $60,844.59, experiencing a 2.51% decrease in the past day and a 7.37% decrease in the past week. Given these developments, it aligns with previous predictions that Bitcoin may face a downturn.
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