Leading Analyst Shares Prediction on How Mt Gox Dump Will Impact Bitcoin Price
Renowned cryptocurrency analyst, Fred Krueger, recently expressed his thoughts on the potential consequences of the collapsed cryptocurrency exchange, Mt Gox, distributing its Bitcoin holdings on the market price.
Krueger predicts that Mt Gox will begin distributing around 100,000 Bitcoins in July. Research conducted by Galaxy estimates that 65,000 BTC will be allocated to individual users, with at least 6,500 BTC being liquidated. However, Krueger suggests that the actual figure could be twice that amount, reaching up to 13,000 BTC.
To put this into context, the quantity of Bitcoin being distributed by Mt Gox is approximately the same as the amount MicroStrategy (MSTR) recently purchased for $780 million. Krueger highlights that this acquisition had minimal impact on the market.
The distribution of Bitcoin by Mt Gox is scheduled to commence in July, although the exact timeline remains uncertain. The distribution process may span several months, adding an element of unpredictability to the market.
Despite the upcoming distribution, Krueger argues that the market has already factored in this event. Bitcoin’s market value experienced a $120 billion decline last week. Krueger believes that even when considering a 40-times multiple, the market has not only priced in the Mt Gox distribution but has significantly surpassed it.
Please note that this article does not provide investment advice.
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