Galaxy Research Director: Bitcoin selling pressure caused by Mt.Gox compensation will be less than expected

Odaily News Alex Thorn, head of Galaxy research, wrote on the X platform that creditors have been trapped in the Mt.Gox bankruptcy case for more than a decade. The physical compensation of BTC and BCH is expected to start in July, but the number of tokens distributed in the end will be less than people think, and the Bitcoin selling pressure caused by Mt.Gox will be less than expected. Mt.Gox lost about 940,000 bitcoins that year, which was worth $424 million at the time. So far, 15% has been recovered, or 141,868 bitcoins. Although only 15% has been recovered, for creditors calculated in US dollars, they have gained 140 times the profit. In addition, creditors may need to bear a loss of about 10%. It is expected that 75% of BTC delistings will choose to bear a 10% loss, which means that about 95,000 bitcoins will be used to pay claims, of which about 20,000 tokens are owed to the claim fund, 10,000 tokens are owed to Bitcoinica BK, and about 6,500 are owed to individual creditors (6,500 This figure is far lower than the 141,868 previously released by the media), so the number of tokens distributed in the final compensation will be lower than market expectations. Creditors clearly prefer long-term Bitcoin holders, but there is reason to believe that individual creditors will be more generous than the market expects. Once these tokens are distributed, a large part will be sold by creditors to markets with less liquidity. All tokens will be distributed to creditor accounts at Kraken, Bitstamp or Bitgo. Once the coins are transferred to these entities, it is expected to take 24-72 hours to appear in user accounts.