A Bloomberg analyst, Mike McGlone, is raising concerns about a potential shift in Bitcoin's market dominance in the second quarter. While Bitcoin has been performing well, McGlone suggests that Bitcoin could face normalization and deflation in the coming months. He highlights that if commodities follow their usual pattern of price decreases and high-risk assets experience a minor pullback, the market could shift towards deflation, similar to the inflation that drove 2022's highs. This shift could have significant implications for the ongoing Bitcoin bull run.
Adding to the uncertainty is the upcoming payout from Mt. Gox, the Japanese bitcoin exchange that collapsed a decade ago. The exchange is preparing to repay its creditors starting in July, with the potential to return up to $9 billion worth of Bitcoin to its owners. While some experts believe many creditors might hold onto their recovered assets rather than selling immediately, there's a possibility that this payout could put downward pressure on Bitcoin's price.
The combined effects of potential dominance reversal and the Mt. Gox payout could significantly impact Bitcoin's trajectory in the coming months.
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