Mt. Gox Payout Could Shake Up Bitcoin Market: Analysts

The upcoming payout of approximately $9 billion worth of Bitcoin to creditors of the collapsed exchange Mt. Gox is expected to have a significant impact on the Bitcoin market. Analysts from JPMorgan and CoinShares predict a potential short-term sell-off as creditors might cash out their holdings, causing pressure on Bitcoin prices. The release of this large amount of Bitcoin, representing about 0.7% of the total supply, could trigger a similar scenario to what was seen with Gemini's recent return of funds to users, which led to a negative price movement. JPMorgan analysts expect a potential price dip in July followed by a rebound from August onwards. This anticipation of a sell-off is amplified by recent Bitcoin selloffs by both the German and U.S. governments, further adding to the market uncertainty. The Mt. Gox repayment is expected to contribute to an already bearish sentiment, particularly considering the drop in hashprice and increased miner capitulation.