UBS Strategists Believe Upcoming Mt Gox Payouts Won’t Impact Bitcoin’s Value
A recent report published by market strategists from the investment bank and financial services company UBS suggests that the upcoming Mt Gox payouts won’t destabilize bitcoin’s value. UBS strategists insist that the new supply coming to the market would be less concentrated.
The Mt Gox rehabilitation plan is 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 repayments. Creditors have until March 10 to choose a repayment scheme, and payments are expected to happen around September 2023. The 142,000 bitcoin (BTC) today is worth more than $3.36 billion using current exchange rates.
James Malcom and Ivan Kachkovski, the UBS strategists, explained that creditors have two main options: to take an early lump sum payment or wait for further proceedings and additional asset recoveries, and to receive funds in fiat or crypto. They added that new supply could still come to the market, but this at least implies it would be less concentrated.
In addition to the 142,000 bitcoin, there is also a stash of 142,000 bitcoin cash (BCH) worth over $19 million and $510 million or 69 billion Japanese yen worth of cash. Those who choose to be paid in crypto must sign up and register for a selected centralized crypto exchange to handle the repayment option.
The UBS strategists noted that there’s still potential for fluctuations in Bitcoin’s value amid the disbursement of Mt. Gox Bitcoin. They concluded that it’s difficult to estimate the extent to which the market has been pricing massive sales coming from Mt Gox, but they believe that such news could have been an additional factor for Bitcoin’s surprising resilience of late.
Do you agree with the UBS strategists’ prediction that the upcoming Mt Gox payouts will have a minimal impact on bitcoin’s value? Or do you believe there’s a chance for more significant fluctuations? Let us know your thoughts in the comments section below.