Hacked Exchange Users Bitcoins Mt. Gox is returned after 8 years; Should we wait for the market to fall?

For the umpteenth time in recent years, there has been renewed news that users of the Mt. Gox exchange are set to lose some of their capital, which they lost during the 2014 hack, after years of waiting. To take. But the question that has arisen again is whether the market can continue to withstand the selling pressure that is likely to arise from the distribution of this significant amount of bitcoins.

to the Report Crypto News, in a letter published by Nobuaki Kobayashi, the lawyer and representative of the bankrupt Matt Gax exchange in Japan, stated that approximately 99% of the exchange’s creditors voted in favor of the proposal on how to distribute their funds by Matt Gax. The proposal has now been approved by the court, but the exact time of distribution of users’ funds has not been determined yet.

Evidence presented to the court shows that the representative of the Japanese exchange, Matt Gax, has 141,686 bitcoins, which, considering the current prices, is worth $ 8.8 billion. Significant amounts of bitcoin cash and Fiat currencies are also in the possession of the custodian of Matt Gax Exchange, which should be distributed to creditors in the future.

The amount of bitcoins provided to Matt Gax’s representative to repay customers is also greater than the total number of MicroStrategy bitcoins. The company is one of the largest bitcoin investors and has 114,042 bitcoins as of its recent acquisition; That’s 27,664 points less than Matt Gax’s representative.

The entry of this volume of bitcoins into the market is not a small event. The total daily volume of bitcoin transactions in digital currency exchanges is currently about $ 35.7 billion, and the addition of another $ 8.8 billion could affect the market. That’s why Bitcoin traders are so desperate to repay Matt Gax exchange users.

There is no set time for the distribution of Matt Gax customers, but as it turns out, the repayment date of these funds can be a very important issue for all Bitcoin investors.

Avi Felman, director of investment portfolios at BlockTower Capital, recently said in an interview with Bloomberg:

Everyone in the market should keep an eye on this issue. This may be accompanied by sharp price fluctuations and if [در تاریخِ عرضه این وجوه] If the bitcoin market is in good shape, this could lead to a temporary price peak, as long-term investors will end up with a profit. [مشخصی] They get out of their trading positions.

Also read: Review of a fact; Exchange is not a wallet!

However, not all experts, such as Felman, are worried about rising sales pressure in the market, and some believe that early digital currency market investors who once traded on Matt Gax are largely reluctant to sell their assets.

Julian Liniger, co-founder and CEO of Swiss brokerage Relai, said:

I do not think that most of these funds will be put up for sale. Many of these people have been in the bitcoin market for a long time, at least since 2014, so it can be said that they are loyal and long-term investors. [بیت کوین] are.

Due to the high volume of bitcoins to be repaid, the marketer may react to the issue, given the high volume of bitcoins to be repaid, Lininger said.

He added:

If this volume of several hundred thousand bitcoins were to be distributed at once, it would certainly have a significant impact on the market. Although I imagine [توزیع واحد‌ها را] Do it gradually over several weeks to avoid the risk of sharp price fluctuations.

Ben Caselin, senior researcher and strategist at IX Digital Currency Exchange (AAX), believes that investors should not be too concerned about the distribution of Matt Gax customers.

“Kazlin says:

The volume of bitcoins that are going to be on the market is remarkable, but it should not be too worrying. Since 2014, the digital currency industry has made advances in maintenance methods [دارایی], Conversion [ارزهای دیجیتال] Fiat currencies and investment methods.

Overall, Kazelin believes that the closure of the Matt Gax exchange case after a few years is a positive development and we should take it as a good omen.

“IX exchange researcher said:

Although the possibility of increasing sales pressure and investors leaving trading positions [بلندمدت] Anything that puts Bitcoin at a price lower than its real value can be re-accumulated [در کف‌های قیمتی] Be accompanied.

He added:

If the price goes down enough, we may see an increase in buying pressure, as this could lead to more people entering the bitcoin market; Those who previously thought they had missed the opportunity.

It is not possible to say exactly how many bitcoins Matt Gax customers are going to sell, but those with large volumes of bitcoins usually invest their capital in over-the-counter markets instead of regular exchanges.

Unlike exchange transactions, which can be seen in the order registers and can affect the price, OTC transactions are done privately between two individuals or legal entities and have no effect on the market.

As we have seen in the past, the demand for bitcoins and digital currencies outside the exchange market is not small. An example of these transactions took place in October; Officials in the North Rhine-Westphalia state of Germany auctioned off bitcoins seized during an investigation into a criminal case.

Although the amount seized by North Rhine-Westphalia police was much lower than that of the bitcoins to be offered by Matt Gax, state attorneys said they were surprised by the amount collected at the auction. The German fair auction, in addition to having many participants, was faced with bids higher than the market price.

Zhu Su, CEO of Three Arrows Capital, has previously mentioned the auction, saying that if Matt Gax bitcoins like the one on the market go public, it may be priced higher. Sell ​​at an instant price.

When a Twitter user asked him why the trades were so attractive, he replied in response to the market’s lack of influence over OTC trades.

So it is safe to say that repaying Matt Gax bitcoins after eight years is not something that bitcoin investors should worry about. Every new bitcoin that enters the market is an opportunity for big investors to buy and enter the digital currency space.

Only time will tell what will happen next, but surely the market is waiting to see when the $ 8.8 billion bitcoin Matt Gax will finally be distributed to its prospective customers.