Bitcoin Rallies 5 as Analysts Downplay Concerns over MtGox

CoinWorld reported:
Data from the data analysis platform SoSovalue shows that with the net inflow of the US spot Bitcoin ETF exceeding the net outflow of $31 million for the first time in two weeks, investors can breathe a sigh of relief.
At the time of writing this article, institutional investors’ new vote of confidence in Bitcoin coincided with the price of Bitcoin rising from $59,495 to $61,485. After Bitcoin broke through the $60,000 mark on June 25th, it rose by 3.5%.
Fidelity’s FBTC fund had the highest inflow of $49 million, while Bitwise’s BITB fund had an inflow of $15 million. Meanwhile, Grayscale’s GBTC fund saw the highest outflow of $30 million.
There was a significant sell-off of Bitcoin ETF, with a net outflow of $714 million in the first five trading days. On June 24th, the sell-off intensified as the trustee of Mt. Gox announced that Mt. Gox creditors would begin to receive compensation next week.
Another factor that may have contributed to the rise in Bitcoin prices is derivative liquidation. Nearly $62 million worth of short positions have been liquidated, accounting for the vast majority of the total liquidation in the past 24 hours.
A trading desk note shared by Off-the-Chain Capital and Decrypt suggests that Mt. Gox creditors may not be too keen to sell their decade-old holdings, as they will begin to receive repayment starting next week.
Off-the-Chain Capital CEO Brian Dixon wrote in the report, “Once the Mt. Gox distribution is completed, I believe the market will generally not immediately start selling assets, as I think that if someone received Bitcoin years ago, then there are not as many claimants who will sell Bitcoin after receiving it.”
He added that the reason is that Bitcoin has matured considerably since Mt. Gox filed for bankruptcy in 2014.
Dixon wrote, “Claimants have to ask themselves if they need the cash or if holding Bitcoin as a long-term value store is better.” He added that Bitcoin has been the best-performing asset for 12 out of the past 15 years.
This view was echoed by Alex Thorn, research director at Galaxy Research Institute.
Thorn wrote on Twitter, “Creditors have spent over 10 years in the Mt. Gox bankruptcy case, and the trustee has stated that the physical distribution of #BTC#BCH will begin in July. We believe that the distributed coins will be less than people imagine, which will create less selling pressure for Bitcoin than the market expects.”
Thorn later tweeted that individual creditors are unlikely to sell their proceeds because they are long-term holders, and pointed out that for most of the past decade, they have had the choice to sell their claims. He added that due to the substantial increase in the value of Bitcoin over the past decade, selling their recovered Bitcoin will also result in substantial capital gains tax for US creditors.
Edited by Stacey Elliott.