Bitcoin is under pressure as it falls below $59,000 due to the announcement of upcoming large-scale repayments by the Mt. Gox trustee. The trustee plans to distribute over 140,000 BTC to clients affected by the 2014 hack, leading to concerns about the potential market impact of such a large volume of Bitcoin hitting the market soon.
Bitcoin is currently trading at $60,700, marking a significant drop and reaching its lowest point since early May. Alex Thorn from Galaxy suggests that the actual number of bitcoins distributed might be lower than anticipated. His research indicates that only about 95,000 coins will be released initially, with 65,000 going to individual creditors who are expected to hold onto their assets rather than sell immediately.
The resistance of these creditors to selling, despite lucrative offers, is partly due to the substantial increase in Bitcoin’s value since the hack and the associated capital gains taxes. Thorn also notes that most of the partners in claims funds are long-term Bitcoin investors rather than short-term traders, indicating that the selling pressure might be less severe than feared.
Thorn predicts that 75% of creditors will opt for the “early” payout in July, resulting in a distribution of about 95,000 coins, with 65,000 going to individual creditors. He believes that these creditors may prove to be more resistant to selling than expected, given their history of resisting compelling and aggressive offers from claims funds and the capital gains taxes involved.
As a result, Thorn suggests that there will be fewer coins distributed than expected, leading to less Bitcoin sell pressure than the market anticipates. Despite previous predictions that Bitcoin might face a downturn, as of today, Bitcoin (BTC) trades at $60,844.59 with a 2.51% decrease in the past day and a 7.37% decrease in the past week.