According to a recent report from market strategists at investment banking and financial services firm UBS, the upcoming Mount Gox payment will not destabilize the value of bitcoin. New supply will come to the market, but UBS strategists argue that “it will be less concentrated.”
UBS market strategists believe that Mt Gox’s payment will not destabilize bitcoin’s value
UBS market strategists believe that the cause for concern regarding the upcoming Mt Gox distribution of 142,000 Bitcoin (BTC)may be slightly exaggerated with respect to “longstanding concerns that Mt. Gox redemptions will hurt Bitcoin’s price.”
Bitcoin.com News reported that Mt Gox’s rehabilitation plan is nearing its end at the end of October 2022. Through the current plan, creditors have several options to choose from regarding repayment.
creditors have untilMarch 10, 2023to choose a repayment method byMarch 10, and payments will be made around September 2023.26}142,000 Bitcoins (BTC) todayare, using current exchange rates, over $3.36 billion worth.
“The most important things are, first, to take an early lump sum payment or wait for further proceedings and additional asset recovery, and second, to receive funds in fiat or crypto,” explained James Malcom and Ivan Kachkovski, UBS strategists.
The UBS executives add:
new supply could still come to market, but this at least suggests that it will be less concentrated.
There are also 142,000 Bitcoin Cash (BCH)worth over $19 million and a stash of cash worth $510 million or $69 billion. Users who wish to be paid in crypto must sign up and register with a selected centralized crypto exchange to process their repayment options.
Creditors who choose this route will need to submit basic KYC/AML information to utilize the crypto exchange to receive reimbursement. While it may not be important, UBS strategists noted that there is still the possibility of bitcoin value fluctuations within the Mt. Gox Bitcoin disbursement.
“Certainly, it is difficult to estimate how much the market values the large sales coming from Mt Gox. However, we believe that such news, which appears to be primarily retail driven, may have been an additional factor for Bitcoin’s recent surprising resilience,” Kaczkowski and Malcolm’s note concluded.
Do you agree with the UBS strategists’ prediction that the upcoming Mount Gox payment will have minimal impact on bitcoin’s value? Or do you believe there is potential for greater volatility? Let us know your thoughts in the comments section below.
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