Bitcoin
Here’s Why $9,000,000,000 in Mt. Gox Refunds May Not Impact Bitcoin Price Much, According to Galaxy Executive
The head of research at cryptocurrency financial services firm Galaxy is calming fears that Mt. Gox’s long-awaited refunds could trigger a Bitcoin crash (Bitcoin).
In a new interview on the Unchained Podcast YouTube channel, Alex Thorn says that defunct cryptocurrency exchange Mt. Gox is set to repay creditors around 142,000 BTC worth nearly $9 billion from July through October.
The news of the impending BTC disbursement from Mt. Gox sent shockwaves through the crypto markets last week, triggering more than US$313 million in settlements.
But Thorn says the fear surrounding the Mt. Gox saga is probably exaggerated, as his research indicates that less than half of the coins are likely to be available for sale on the open market after issuance. He also says that recipients will likely hold on to their BTC stack rather than selling outright.
According to Thorn, individuals who will receive their BTC in the coming months have agreed to take a 10% to 11% cut to take advantage of Mt. Gox’s early payment scheme. Thorn estimates that 75% of lenders have accepted the deal, reducing the number of BTC for delivery to 94,600 coins.
The Galaxy executive goes on to note that many people have already sold their bankruptcy claims to funds at a discount. According to Thorn, the funds were aggressively buying up claims from Mt. Gox users who didn’t want to wait years before seeing a single cent of their money.
“Many people sold their coins and we think that around 20,000 Bitcoins are held in these funds. So let’s put that aside for a second. So now we are at 74,000 coins.”
Thorn notes that the funds that bought the bankruptcy orders are unlikely to be major sources of sales because he believes the entities that provided liquidity to buy the orders will hold the coins when they are released.
“My understanding from talking to some of them is that they all plan to deliver cash to their LPs (liquidity providers)… Again, from talking to some large LPs in these funds, as well as some of the funds that these LP bases are almost entirely comprised of by high net worth Bitcoiners who effectively want Bitcoin at a discount… By doing some due diligence on this, we are sure that these are actually people with diamond hands who wanted to accumulate at a discount.”
According to Thorn, the last group to receive BTC from Mt. Gox is crypto exchange Bitcoinica. Thorn says the exchange is prepared to raise 10,000 BTC, but notes that Bitcoinica cannot sell its Bitcoin hoard immediately because it needs to go through the bankruptcy process in New Zealand.
In total, Thorn estimates that 64,000 BTC will be disbursed to lenders’ trading accounts. The Galaxy executive believes that these entities are the first Bitcoiners who are more likely to keep their stacks rather than selling upon receipt.
“In general, I don’t think there will be much sales. That’s what it all boils down to. Or at least I should say that I think there will be a lot less selling than a naive glance at the title suggests.”
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Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.
The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
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Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Bitcoin
Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise
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At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.
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