The cryptocurrency market is never short of surprises and the upcoming Mt Gox payouts of 142,000 Bitcoin are no different. Many are concerned that this would cause a significant shift in the price and value of Bitcoin. However, UBS strategists have recently asserted that these payouts will not send shockwaves through the market and have minimal impact on Bitcoin’s overall value. This article explores UBS’s stance on the upcoming payouts and their strategies for mitigating any potential disruption they cause.
Upcoming Mt Gox Payout of 142,000 Bitcoin
UBS market strategists have predicted that the upcoming Mt Gox payout of 142,000 bitcoin (BTC) will not significantly affect Bitcoin’s value. According to UBS strategists, the recent resilience of Bitcoin’s value may have been caused by the Mt Gox news, as investors are now more confident that their investments are safe.
Creditors have until March 10 to choose a repayment scheme and payments are expected to happen around September 2023. The payout will consist of two parts, the first part being a payout of the remaining 70% of their claims in Bitcoin and the second part being a payout of the remaining 30% in Japanese Yen. However, creditors must submit KYC/AML information if they choose to receive payments in cryptocurrency.
The Mt Gox trustee has also announced that besides the Bitcoin payout, there is a stash of 142,000 bitcoin cash (BCH) worth over $19 million and $510 million or 69 billion Japanese yen worth of cash. Former creditors are also able to choose whether they would like to receive their payment in Bitcoin or fiat currency.
The Mt Gox trustee has pointed out that the upcoming payouts should not be taken as an indication that prices will go up or down. In fact, they highlighted that if all creditors choose to redeem their claims in Bitcoin, this could lead to an oversupply in the market, thus pushing down prices. They added that many creditors have chosen to hold on to their coins, so it is unlikely that such an oversupply will occur.
In conclusion, UBS market strategists predict that the upcoming Mt Gox payout of 142,000 bitcoin (BTC) will not significantly affect Bitcoin’s value. Although some investors may feel more confident about investing in Bitcoin due to this news, the payouts should not be taken as an indication of where prices will go next. Creditors must remember to submit KYC/AML information if they choose to receive payments in cryptocurrency and should also take into account the possibility of an oversupply situation if all creditors decide to redeem their claims in Bitcoin.
UBS Strategists believe that the upcoming Mt Gox Payouts of 142,000 Bitcoin will not have a significant impact on the value of Bitcoin. While the impact may be minimal, it does still create an interesting shift in the landscape of the cryptocurrency world. Ultimately, only time will tell how this event will affect Bitcoin’s value in the long term.