Defunct bitcoin exchange Mt. Gox has finally… bitcoin-and-bch-repayments6/” target=”_blank” rel=”nofollow”>Announced the final date to begin refunding bitcoin and bitcoin Cash (BCH) to affected customers, starting this week.
This long-awaited announcement has raised concerns within the cryptocurrency community regarding the potential contribution of these clients to the continued selling pressure in the bitcoin market.
Experts are confident of absorbing the potential sell-off in Mt. Gox shares
While some analysts express apprehension about potential losses in bitcoin, they generally agree that any concerns about a Mt. Gox-related sell-off will likely be contained and short-lived.
Lennix Lai, Chief Commercial Officer (CCO) of cryptocurrency exchange OKX, bitcoin-what-it-means-for-btc.html” target=”_blank” rel=”nofollow”>believe that many of Mt. Gox's early adopters and creditors are long-term bitcoin enthusiasts and are less likely to sell all of their bitcoin holdings right away.
Drawing comparisons to previous law enforcement-related sales, such as the Silk Road case, Lai notes that they did not result in sustained catastrophic consequences. price drops.
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Experts, including CCData research analyst Jacob Joseph, suggest that markets have enough liquidity to absorb any potential sell-off.
Joseph explains that many of the inhabitants of Mount Gox creditors They can choose to receive early redemption by accepting a 10% reduction in their holdings, which would reduce overall selling pressure.
Recent price movements indicate that the temporary impact of Mt. Gox refunds may already be priced into the market, further supporting the view that potential selling pressure could be mitigated.
Various recipients and time element
Alex Thorn, head of research at Galaxy Digital, believes that fewer coins will be distributed than expected, which will translate into less selling pressure than expected.
However, Thorn acknowledges that even if only 10% of the distributed bitcoins are sold, it could still have an impact on the market. Thorn notes that most individual creditors deposit their coins directly into trading accounts, making them easily sellable.
Vijay Ayyar, director of consumer growth for Asia-Pacific at cryptocurrency exchange Gemini, suggests the overall impact of the Mt. Gox outlay is likely to be dissipated due to the varied recipients of the funds.
Individual holders will receive their bitcoin immediately, while a significant amount will be disbursed to Claim fundswhich will then be distributed to its limited partners. Ayyar mentions that this process could take time, which adds a time element to the impact on price.
bitcoin Price Predictions for July
As the cryptocurrency market enters the month of July, analysts are offering insights into the bitcoin price outlook based on historical trends and technical analysis.
It is worth noting that Ali Martinez x.com/ali_charts/status/1807326177910043012″ target=”_blank” rel=”nofollow”>suggests bitcoin has historically shown a strong rally in July after a negative performance in June. Martinez highlights that during this month, bitcoin has shown an average return of 7.98% and a median return of 9.60%.
Martinez also x.com/ali_charts/status/1807762408514953353″ target=”_blank” rel=”nofollow”>emphasizes bitcoin is currently showing strong support at $61,100, which could serve as a crucial level for price stability. On the other hand, the analyst identifies $64,050 and $66,250 as the most important resistance zones.
Breaking through these resistance levels is critical for bitcoin to have the potential to retest its all-time high of $73,700 set in March of this year.
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Supporting this view, another technical analyst, Rekt Capital, x.com/rektcapital/status/1807515077190307963″ target=”_blank” rel=”nofollow”>suggests bitcoin is exhibiting favorable price action to form a cluster at the low of the $60,600 range. This clustering effect, according to the analyst, could play out throughout July.
This cluster formation aims to prepare for a possible rally to the range high at $71,500.
At the time of writing, the largest cryptocurrency on the market is trading at $62,630, up 2% in the 24-hour time frame.
Featured image of DALL-E, chart from TradingView.com
