CoinDesk Reports:
After a decade of waiting, July may finally bring compensation to users of the now-defunct Mt.Gox exchange. However, market participants appear apprehensive about the distribution, fearing further sell-offs.
It is crucial to note that Bitcoin has been declining since early June, failing to establish meaningful upward momentum despite modest ETF inflows. On July 3rd, prices briefly fell below $60,000 before a slight rebound, followed by a sharper drop the next day.
Latest data indicates a subdued performance for Bitcoin in the third quarter due to uncertainties surrounding the distribution of Mt.Gox funds.
Mt.Gox Payouts Keep Bitcoin Suppressed
According to the latest update from QCP Capital, Bitcoin’s price is expected to remain relatively calm. The Singapore-based crypto trading firm emphasizes the surge in the U.S. stock market to new highs following Federal Reserve Chairman Jerome Powell’s statement that the U.S. is on an anti-inflationary path.
Despite bullish trends in the stock market, Bitcoin and Ethereum have not seen any breathing room, with prices hovering around $57,000 and $3,000 respectively.
It is noteworthy that the options market remains heavily skewed to the upside, indicating expectations of a year-end rebound. Significant buying interest in long-term options with strike prices of $100,000 and $120,000 underscores this sentiment.
However, QCP Capital believes Bitcoin’s third-quarter performance will be lackluster, primarily due to market uncertainties surrounding the impending Mt.Gox distribution, scheduled for July.
July Marks the Return for Mt.Gox Users
In 2014, cryptocurrency exchange Mt.Gox collapsed, leaving approximately 127,000 creditors owed 850,000 bitcoins worth $9.4 billion at the time. These creditors have waited over a decade to reclaim their funds due to multiple unnoticed hacks that led to the exchange’s demise.
While the latest distribution developments will begin compensating affected users early in July, signaling a significant relief for them, concerns over further market sell pressure have been raised.