A recent report published by market strategists at investment bank and financial services firm UBS says upcoming Mt Gox payments will not destabilize bitcoin’s value. While a new offering will come to market, UBS strategists insist that it “would be less focused.”
UBS Market Strategists Believe Mt Gox Payments Will Not Destabilize Bitcoin’s Value
UBS market strategists believe the cause for concern over the upcoming Mt Gox distribution of 142,000 Bitcoin (BTC) may be a bit of a stretch regarding the “entrenched fear that Mt. Gox swaps would hurt the bitcoin price.”
Bitcoin.com News reported on the Mt Gox rehabilitation plan nearing the end of the road at the end of October 2022. Through the current plan, creditors have several options to choose from when it comes to payments.
Creditors have up to March 10th to choose a payment scheme, with payments expected to be made around September 2023. The 142,000 Bitcoin (BTC) today it is worth over $3.36 billion using current exchange rates.
“The most important ones are, first, whether to accept an early balloon payment or wait for further proceedings and additional asset recoveries, and second, whether to receive funds in fiat or crypto currency,” UBS strategists James Malcom and Ivan Kachkovski explained.
The UBS executives added:
New supply could still hit the market, but this at least implies that it would be less concentrated.
There is also a stash of 142,000 Bitcoin Cash (BCH) worth more than $19 million and $510 million or 69 billion Japanese yen in cash. Users looking to get paid in crypto need to register and register with a selected centralized crypto exchange to handle the payment option.
Creditors who choose this route must submit basic KYC/AML information to leverage a cryptocurrency exchange to receive the refund. While it may not be significant, UBS strategists noted that there is still a possibility of fluctuations in Bitcoin’s value amid the Mt. Gox Bitcoin disbursement.
“It is certainly difficult to estimate to what extent the market has been pricing in the massive sales coming from Mt Gox. However, we believe that such news could have been an additional factor for what we believe may be primarily retail-led: Bitcoin’s surprising resilience of late,” Kachkovksi and Malcolm’s note concluded.
Do you agree with UBS strategists’ prediction that upcoming Mt Gox payments will have minimal impact on bitcoin’s value? Or do you think there is a possibility of more significant fluctuations? Let us know your thoughts in the comments section below.
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