Mt. Gox customers expected to hang on to their bitcoin
$MicroStrategy(MSTR)$ $Marathon Digital Holdings Inc(MARA)$ $CleanSpark, Inc.(CLSK)$ $Iris Energy Ltd(IREN)$ $Coinbase Global, Inc.(COIN)$
🙈🙈WHAT IS MT.GOX AND HOW IS IT INVOLVED IN THE RECENT BITCOIN SLIDE? 🙈🙈
💛 Mt. Gox is a Tokyo-based bitcoin exchange that went bankrupt in 2014 after a series of heists involving a total of 650,000 - 950,000 Bitcoins (worth $9 billion then and $59 billion now at current prices).
💛 About 141,000 bitcoins is expected to be returned to Mt. Gox victims (roughly 20, 000 creditors) this week.
💛 Is 141, 000 bitcoins a lot? Not exactly. This amounts to roughly 0.7% of the total 19.7 million bitcoins outstanding. To give you context, MicroStrategy owns 226,331 bitcoins as of June 24, 2024. The impact felt by the 'supposed liquidation of 141, 000 Bitcoins by victims that MAY NOT even happen' may hence be marginal.
💛 While some claim that victims will cash out, take the money and run, causing further downward pressure on the price of Bitcoin, other analysts say otherwise.
💛 Last month, crypto exchange Gemini returned more than $2 billion worth of bitcoin to users with funds that had been trapped in its Earn lending program (after withdrawals were suspended on Nov. 16). JPMorgan analysts attribute recent declines to profit taking by Gemini victims and expect Mt. Gox customers to be similarly inclined to sell some of their bitcoin to profit from seismic gains.
💛"Assuming most of the liquidations by Mt. Gox creditors take place in July, [this] creates a trajectory where crypto prices come under further pressure in July, but start rebounding from August onwards," JP Morgan was quoted saying.
🔥🚀HOWEVER🔥🚀
🤞🩷 As much as JP Morgan expects some victims to take profits, other analysts feel that Mt. Gox customers are expected to hang on to their bitcoin, and any sale, if any, would be merely short term. Market is always overly irrational though, and any impulse-selling now may cause future regret.
🤞🩷 "Many of Mt. Gox's early users as well as creditors are LONG-TERM BITCOIN ENTHUSIASTS who are LESS LIKELY to sell all of their bitcoin immediately," said Lennix Lai, chief commercial officer of crypto exchange OKX. Afterall, Mt. Gox's victims have waited from 2014 till now in 2024, what's the hurry in selling their Bitcoins off now? Might as well wait awhile more for Bitcoin to reach a new ATH, right? They have been waiting for 10 years anyway; there is no urgent monetary need to liquidate it now when Bitcoin is dipping. If you bought many Bitcoins at such a low price of $600/Bitcoin back then, would you liquidate them now or wait for them to reach new highs? Common sense, wait it out and be a future millionaire / billionaire. Perhaps the best investment they have ever made in their lifetime! 🔥🚀✨️ Lai further added that previous sell-offs by law enforcement, including the Silk Road case, did not result in a sustained catastrophic price drop.
🤞🩷 CoinShares' Butterfill suggested there's enough market liquidity to cushion the blow of any possible mass market sell action. "Bitcoin has maintained a daily trading volume of $8.74 billion on trusted exchanges this year, suggesting that liquidity is sufficient to absorb these sales over the summer months," said Butterfill.
🤞🩷 According to CCData research analyst Jacob Joseph, the markets are more than capable of absorbing the selling pressure, and not all holdings are set to be liquidated on the open market, reducing the overall selling pressure. Recent price moves suggest the temporary impact of the Mt. Gox repayments may already be priced in.
🤞🩷 Galaxy Digital's head of research, Alex Thorn, believes fewer coins will be distributed than people think, meaning there will be less sell pressure than the market expects. Hence there is no need to over react and go into an overdrive sell mode.
🤞🩷 Vijay Ayyar, head of consumer growth for Asia-Pacific at crypto exchange Gemini, said that the overall impact of the Mt. Gox disbursement is likely to be "dissipated," given the recipients of the funds are varied.
🤞🩷 CoinShares' Butterfill said the Fed's new rate forecast was among "the likely culprits for the recent price decline" in bitcoin. This, along with other issues like election, is "likely to weigh on prices in the lower volume summer months," Butterfill said. However, "the fundamental investment case remains very much intact," he added.
🤞🤞CONCLUSION🤞🤞
🔥 For crypto bulls who are still holding onto crypto stocks, instead of impulse selling them off or cutting losses like I did previously, you could consider selling covered calls whilst waiting for price of Bitcoin to recover. Afterall, Standard Chartered predicted that price of Bitcoin will hit $100,000-$150,000 by end of this year.
🔥 For crypto bulls who forsee a bull run towards the end of this year, now's the time to buy into the miner stocks of your choice IN TRENCHES. DO NOT GO ALL IN. Remember I said that MARA and CLSK are overly priced recently and that I've exited my positions? Now is your OPPORTUNITY to SEIZE if you guys are keen. STRIKE WHILE THE IRON IS HOT. BUT WITH LIMITS YA. DON'T OVER LEVERAGE PLEASE.
🔥 Lastly...
STAY KNOWLEDGEABLE, INVESTED AND INFORMED. DO NOT MAKE RECKLESS DECISIONS AND BE OVERLY PANICKY. STAY CALM.
🔥🚀BITCOIN IS MORE RESILLIENT THAN YOU THINK. 🔥🚀
WITH A WHOPPING MARKET CAP OF 1-2TRILLION,Bitcoin would not be crashing to 0, period. KEEP CALM. In fact, many would see this as a good entry point. So hold on to your coins if you're into holding physical Bitcoins too.
✨️✨️Cheers and all the best!!✨️✨️
❤️🧡💛💚💙🩵💜🩷
@MillionaireTiger @TigerStars @TigerEvents @TigerCommunity @Tiger_comments @CaptainTiger @TigerGPT
❤️🧡💛💚🩵💜🩷
Modify on 2024-07-05 17:57
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Hey Sis Space Rocket, you’ve hit the Bitcoin nail on the head! 🚀 Here’s my take on it:
Mt. Gox is the original Bitcoin soap opera – complete with heists, a Tokyo drama scene, and a plot twist involving billions! Now, with 141,000 Bitcoins making a cameo, it’s like a reunion episode of a decade-old series. Grab the popcorn! 🍿
While some are ready to run like they’ve got the golden ticket to Willy Wonka’s factory, others might just sit back and enjoy the show. After all, if you’ve held onto those Bitcoins through 10 years of wild crypto rides, what’s a few more months, right? 🕰️
JP Morgan’s calling it a July fireworks show, but I reckon it’s more of a sparkler than a bonfire. Market reactions can be as irrational as my last midnight trade when I mistook the ‘buy’ button for ‘sell’! 🌌
And don’t forget, Bitcoin’s got liquidity like an Olympic swimming pool. CoinShares’ Butterfill is like our lifeguard, ensuring the market can take a few splashes without anyone drowning. 🏊♂️
So, let’s keep our heads cool and our wallets ready. Bitcoin’s resilience is stronger than my morning coffee, and you know that’s saying something! ☕
Hold on to your coins and ride this rollercoaster with a smile. After all, where’s the fun without a little thrill? It’s like watching a soap opera where you’re also a character – thrilling, unpredictable, and a bit of a laugh!
Remember, even if the market’s acting like it’s had one too many cups of my morning coffee, we’re in it for the long haul. Bitcoin’s like a stubborn cat—it’ll land on its feet no matter what. 🐱
Keep rocking, Sis! 🚀🔥💸 Happy trading ahead! Cheers BC 🍀
Mt. Gox was a Tokyo-based bitcoin exchange that filed for bankruptcy in 2014 after experiencing a series of thefts that resulted in the loss of a significant amount of bitcoins. The total number of bitcoins stolen was estimated to be between 650,000 and 950,000, which was worth $9 billion at the time and approximately $59 billion at current prices.
Recently, it has been reported that about 141,000 bitcoins are expected to be returned to Mt. Gox victims, who are creditors of the exchange. This amounts to roughly 0.7% of the total 19.7 million bitcoins currently in circulation. While this may seem like a large amount, it is important to note that it represents a relatively small portion of the overall bitcoin market.
There are differing opinions on the potential impact of the return of these bitcoins to the market. Some believe that victims may choose to sell their bitcoins, putting downward pressure on the price of bitcoin. However, other analysts argue that the impact may be marginal, considering the size of the overall market and the fact that some victims may choose to hold onto their bitcoins.
It is worth noting that the return of funds to users by other crypto exchanges, such as Gemini, has not resulted in significant price declines. Additionally, it is important for investors to stay informed and make rational decisions rather than panic-selling or making impulsive moves.
For those who are still holding onto crypto stocks, one strategy to consider is selling covered calls while waiting for the price of bitcoin to recover. This strategy allows investors to generate income from their holdings while potentially benefiting from a rebound in prices.
Lastly, it is important to stay knowledgeable, invested, and informed when it comes to cryptocurrency investments. Bitcoin has shown resilience in the past, and its market capitalization of 1-2 trillion dollars suggests that it is unlikely to crash to zero. Many investors may see the current market conditions as a good entry point for bitcoin.
Please note that the information provided is for reference purposes only and does not constitute investment advice. It is always recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.