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Cryptocurrency analyst Fred Krueger recently shared his insights on the potential market impact of Mt Gox’s Bitcoin distribution to creditors.
Fred Krueger, a prominent analyst and staunch advocate of Bitcoin, has recently provided his perspective on the potential effects of the bankrupt cryptocurrency exchange Mt Gox’s upcoming Bitcoin distribution on market prices.
According to Krueger, Mt Gox is set to distribute approximately 100,000 Bitcoins starting from July. Research firm Galaxy estimates that 65,000 BTC will go to individual users, and at least 6,500 BTC will be liquidated. However, Krueger suggests that the actual liquidation figure could be twice that amount, around 13,000 BTC.
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To put this into context, this volume is roughly equivalent to the amount MicroStrategy (MSTR) acquired just four days ago for $780 million. Krueger notes that this purchase had little to no noticeable impact on the market.
While the distribution of Bitcoin by Mt Gox is set to begin in July, the exact schedule remains unknown. The distribution could span several months, adding an element of uncertainty to the market.
Despite the impending distribution, Krueger believes the market has already accounted for this event. Bitcoin’s market cap dropped by $120 billion last week. Krueger asserts that even with a 40x multiplier, the market has not only priced in the Mt Gox distribution but has significantly overshot it.