https://ift.tt/B8STkUc A recent report published by market strategists from the investment bank and financial services company UBS says t...
A recent report published by market strategists from the investment bank and financial services company UBS says that the upcoming Mt Gox payouts won’t destabilize bitcoin’s value. While a new supply will come to the market, UBS strategists insist that “it would be less concentrated.”
UBS Market Strategists Believe Mt Gox Payouts Won’t Destabilize Bitcoin’s Value
UBS market strategists think that the cause for concern over the upcoming Mt Gox distribution of 142,000 bitcoin (BTC) may be a bit overhyped in regard to the “long-held fear that Mt. Gox redemptions would hurt bitcoin’s price.”
Bitcoin.com News reported on the Mt Gox rehabilitation plan nearing the end of the road at the end of October 2022. Through the current plan, creditors have several options to choose from when it comes to repayments.
Creditors have until March 10 to choose a repayment scheme, and payments are expected to happen around September 2023. The 142,000 bitcoin (BTC) today is worth more than $3.36 billion using current exchange rates.
“The most important ones are, first, whether to take an early lump sum payment or wait for further proceedings and additional asset recoveries and second, receiving funds in fiat or crypto,” explained the UBS strategists James Malcom and Ivan Kachkovski.
The UBS executives added:
New supply could still come to the market, but this at least implies it would be less concentrated.
There’s also a stash of 142,000 bitcoin cash (BCH) worth over $19 million and $510 million or 69 billion Japanese yen worth of cash. Users looking to be paid in crypto must sign up and register for a selected centralized crypto exchange to handle the repayment option.
Creditors choosing this route need to submit basic KYC/AML information to leverage a crypto exchange to be reimbursed. While it may not be significant, the UBS strategists noted that there’s still potential for fluctuations in Bitcoin’s value amid the disbursement of Mt. Gox Bitcoin.
“It’s certainly difficult to estimate the extent to which the market has been pricing massive sales coming from Mt Gox. However, we think such news could have been an additional factor for what we believe could be mainly retail-led — Bitcoin’s surprising resilience of late,” Kachkovksi’s and Malcolm’s note concluded.
Do you agree with the UBS strategists’ prediction that the upcoming Mt Gox payouts will have a minimal impact on bitcoin’s value? Or do you believe there’s a chance for more significant fluctuations? Let us know your thoughts in the comments section below.
from Bitcoin News
via RiYo Analytics
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