“10 years worth of selling pressure coming”… Bitcoin, Mt. Gox advisory

[서울=뉴시스]Reporter Jiyoung Lee = There are concerns that Bitcoin, which recently went through a halving, may be pressured by 10 years of selling pressure. This is as the repayment process for Mt. Gox, a Japanese virtual asset exchange that went bankrupt due to hacking in 2014, is imminent. The expected repayment amount alone is 13 trillion won in Bitcoin.

According to the industry on the 24th, Mt. Gox recently announced for the first time the amount of virtual assets to be returned to creditors and the return date.

According to the information reported to Reddit by some creditors, during this repayment process, Mt. Gox received ▲ 142,000 Bitcoin (KRW 13.02 trillion) ▲ 143,000 Bitcoin Cash (KRW 100 billion) ▲ 69 billion yen (KRW 6,103) in cash. 100 million won) will be returned.

However, the specific return date is not known. This is because some creditors refused to disclose it. Considering that the deadline for the repayment process is October 31st, the next six months can be viewed as a possible period for repayment.

This actually means that the bad news about Mt. Gox, which has caused fear in the coin market every year, is imminent. The virtual asset industry has been concerned that the market will fluctuate significantly when Mt. Gox begins repayment. Domestic coiners also called it ‘Magog’ and selected it as a representative bad news.

In fact, as soon as the news came out in December of last year that Mt. Gox had begun repaying cash (yen) bonds to some creditors, Bitcoin began to decline.

In particular, as the scale of repayment became more concrete, the fear grew even more. There are also observations that the selling pressure of Magogbal may be weighing down the market before the effects of the half-life that occurred on the 20th in four years can be fully enjoyed. This is the moment that creditors have been waiting for for 10 years since the exchange’s bankruptcy.

K33, a global virtual asset analysis company, said in a report on the 23rd (local time), “The 13 trillion won worth of Mt. Gox redemption volume could put negative pressure on the Bitcoin price,” adding, “Even if the volume does not necessarily lead to selling pressure, it will “It will be enough to surprise you,” he said.

He continued, “It is expected that returns will begin as early as next month,” and predicted, “It is unlikely that creditors will sell all the virtual assets they received at once, but investors who are concerned about the selling trend from Mt. Gox may be passive in their investments.”

BeInCrypto, a media outlet specializing in virtual assets, said, “When repayment proceeds as expected, significant selling pressure from creditors will continue,” and added, “This reflects the waiting of creditors for about 10 years since the collapse of the exchange.”

Some say that the pressure to sell on a large scale is an excessive judgment. Some argue that even if there is a market impact, it will only be short-term.

Sampson Mow, who was an advisor when El Salvador introduced Bitcoin as fiat currency, diagnosed that “the decline in virtual asset prices due to the repayment of Mt. Gox bonds will be limited.”

“Creditors who have held on for 10 years will not be in a hurry to sell,” said Mow, adding, “It will not be easy for creditors to find alternative assets in a situation where virtual assets are strong.”

Marty Greenspan, founder of Quantum Economics, also predicted, “The amount of Bitcoin that Mt. Gox will repay is at a level that the market can absorb in a short period of time,” and added, “The potential impact of this issue will subside quickly.”

Meanwhile, Mt. Gox, founded in 2010, was famous as the world’s largest Bitcoin exchange, accounting for 70% of Bitcoin trading share at the time. However, due to hacking in 2014, it lost 850,000 Bitcoins, or 4% of the total Bitcoin issued, and went bankrupt.

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