Less bitcoin supply will come to market from the Mt. Gox bankruptcy repayments than potentially feared, as many early adopters are likely to have remained crypto believers, UBS said. willcanny99 reports
Creditors of crypto exchange Mt. Gox are about to recover some of their funds following a 10-year liquidation process, but concerns that large amounts of bitcoin will be released onto the market are overdone, UBS said in a report Monday.
“The early lump-sum option with fiat repayments suggests that the exchange would have to sell BTC to raise the requisite cash,” strategists Ivan Kachkovski and James Malcom wrote, noting the “long-held fear that Mt. Gox redemptions would hurt bitcoin’s price.” Still, the potential for the repayments to influence the price exists. That amount of bitcoin represents around 90% of average supply active within the last day and 28% in the last week. That’s significant because active supply increases are normally associated with weakness in the BTC price, the note said.
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