Mt Gox Redemption to Have Limited Impact on the Market

"While Mt. Gox is holding around 142,000 BTC, the actual amount that will be distributed to the market is likely to be closer to 75,000 BTC," says Luke Nolan, an analyst at Coinshares, a European digital asset manager, in a report titled "Mt. Gox Redemption Impact on the Market". The market liquidity and the fact that creditors may not sell all of the redemption volume may mitigate the redemption-related selling pressure." "Mt. Gox will return a total of 142,000 BTC, 143,000 BCH, and 69 billion yen to its creditors," the report said. Creditors had until March 10 last year to decide whether they wanted to receive a lump sum of cryptocurrency in July, about 90% of the amount due (in-kind), and we estimate that 75% of them accepted the offer. The amount of BTC to be distributed in July was therefore reduced from 142,000 BTC to 95,000 BTC, and the creditor MGIF, a Mount Gox investment fund, has stated that it has no plans to sell its Bitcoin holdings, so the actual amount that will hit the market is closer to 75,000 BTC. The distribution will take place over the course of a month and across multiple exchanges."