Most of the Bitcoin being repaid by defunct exchange Mt. Gox will likely be sold, threatening to cause more downside pressure on the price of Bitcoin.

The Mt. Gox repayments could add $8.2 billion worth of additional selling pressure to the Bitcoin (BTC) price, according to finance analyst Jacob King.

The analyst said that onchain movements already point to the fact that Mt. Goxs creditors have started selling. King wrote in a July 4 X post:

The gloomy prediction comes hours after Mt. Gox began repaying its debts in Bitcoin and Bitcoin Cash (BCH), the collapsed crypto exchange announced on July 5.

Related: Ether ETFs will only be a sidekick to Bitcoin ETFs Bloomberg analyst

The predictions raise concerns about the price of Bitcoin, which has been struggling to gain traction for over a month and is currently trading above the $60,000 psychological mark.

Bitcoin has been in a downtrend for the entire month of June, logging a nearly 18% loss during the second quarter of 2024.

However, the market selling by Mt. Goxs creditors could potentially take Bitcoin back into bear market territory, according to the analyst:

The Bitcoin price fell 3.9% in the 24 hours leading up to 10:17 am UTC on July 5 to trade at $55,250. The worlds first crypto is down over 10% on the weekly chart, according to CoinMarketCap data.

Despite the potential selling pressure, the repayments are a positive development for the industry and the defunct exchanges users. This sentiment is echoed by Mark Karpels, the former CEO of Mt. Gox, who highlighted this in a July 5 X post:

Despite the potential selling pressure, the repayments come as a positive for the industry and the exchanges defunct users, as also highlighted by Mark Karpels, the former CEO of Mt. Gox. He wrote in a July 5 X post:

Related: Justin Sun offers to buy German govts $2.3B Bitcoin stack to minimize market impact

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds.

Considering that the Bitcoin price increased by over 8,500% during the past 10 years, the majority of defunct creditors will likely look to lock in some profits.

This is partly why King also expects around 99% of the creditors to sell their BTC. He wrote:

Magazine: Could a financial crisis end cryptos bull run?

View post:

Up to 99% of Mt. Gox's $8.2B Bitcoin could be sold Analyst - Cointelegraph