CoinDesk reports:
Analysts from digital asset management firm CoinShares suggest concerns over repayments from the defunct cryptocurrency exchange Mt. Gox may be overstated.
Once the world’s largest Bitcoin exchange, Mt. Gox famously collapsed and “lost” a significant portion of its coins to theft. The exchange has since recovered most of these coins and remains embroiled in a lengthy bankruptcy process to reimburse its former clients, a major source of market uncertainty. Selling Mt. Gox’s BTC to repay creditors could potentially unleash significant selling pressure.
In a recent report, CoinShares indicates that many Mt. Gox creditors might opt to retain a large portion of their coins to minimize tax liabilities. The company notes that any sell-off that does occur could be dispersed across various cryptocurrency exchanges, providing ample liquidity for buyers to absorb selling pressure.
“Considering creditors are likely to receive around 15% of the Bitcoin they held at the time, which has appreciated approximately 13,600% since then, many may find selling immediately triggers substantial tax events. Therefore, a significant number of creditors may choose to sell only a small portion of their holdings or hold off temporarily.”
Over the past 12 years, creditors have faced numerous offers from claim buyers, which would result in dollar payouts, further supporting this point. The exact amount of coins to be sold post-distribution remains uncertain.
“Distributions will occur across multiple exchanges (Bitstamp, Kraken, Bitbank, BitGo, SBI VC Trade, and others) throughout the month, reducing the likelihood of large-scale simultaneous sales.”
CoinShares asserts that the idea of potential selling pressure outweighs the actual sell-off.
At the time of writing, Bitcoin is trading at $60,146.
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