Mt. Gox was one of the best-known bitcoin (BTC) exchanges of the 2010s. In 2014, the exchange suffered a hack resulting in the loss of billions of dollars in BTC. The situation bankrupted the exchange and plunged holders into turmoil ever since. Recently, the case has undergone a new development. Some wonder if the price of bitcoin would not be affected.
No need to worry about bitcoin (BTC), say UBS analysts!
While bitcoin (BTC) has somewhat regained its footing since January, the Mt. Gox affair is playing spoilsport. The rumor of the reimbursement of part of the funds lost by the creditors seems imminent. And far from making people happy, the news makes people more worried.
In fact, many investors fear that this new development negatively impacts the price of the asset. Because, according to them, the placing on the market of stolen bitcoins (BTC) would constitute an obstacle to its valuation. But the strategists of the Swiss bank UBS temper and consider this unlikely.
To defend their opinion, analysts rely on the announced creditor repayment plan. Between early receipt of an amount “lump sum”, and payment in fiat currency or crypto, the procedure would be limiting. In addition, it should only concern 20% of the bitcoins (BTC) diverted on Mt. Gox, or approximately 142,000 tokens of the flagship crypto.
Additionally, analysts believe that most of this low is unlikely to enter circulation. This, because the holders of bitcoins (BTC) still remain great lovers of this crypto today. It is therefore not obvious that the latter want to give them up.
Speculation aside, UBS strategist Ivan Kachkovski thinks bitcoin (BTC) is showing great resilience so far. A direct consequence of “retail” according to him. “It is certainly difficult to estimate how well the market has valued the massive sales coming from Mt.Gox. However, we believe this news may have been an additional factor for BTC’s surprising resilience lately,” he indicated.
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