Alex Dovbnya
Will this be a major bearish catalyst for Bitcoin?
The price of Bitcoin (BTC) experienced a sharp downturn after Mt. Gox transferred $5.1 billion worth of Bitcoin to a new wallet.
Alex Thorn, head of research at Galaxy Digital, has predicted that the majority of that BTC will get hodl’d. However, the analyst expects strong selling pressure for Bitcoin Cash (BCH).
Thorn believes that these assets are currently being consolidated before being eventually moved to creditors. Hence, the recent transfers do not mean that repayments are imminent.
The analyst has added that many creditors were offered to sell their claims, but they refused to do so. “Lots of speculation here on my part, no doubt. Even a small percentage of it selling could move the market also,” he added.
Mt. Gox creditors, who got hit by the collapse of the major Bitcoin exchange in 2014, have been striving to get their funds back for a decade. Analysts believe that it is reasonable to view the eventual distribution of funds as a bearish catalyst.
After peaking at $70,601 on the Bitstamp exchange on May 27, the price of the leading cryptocurrency crashed by nearly 4.6%.
