Categories: Payment system news

QCP Capital Predicts ‘Subdued’ Bitcoin Performance As Mt. Gox Payouts Loom

After a decade of waiting, July might finally bring restitution to the users of the now-defunct Mt. Gox exchange. However, it appears that market players are on edge regarding the distributions and fear further sell-offs.

It is important to understand that Bitcoin has already been on a decline since the beginning of June and has failed to build a meaningful upward momentum despite modest ETF inflows. On July 3rd, the price fell under $60,000 briefly followed by a slight rebound. On the following day, the price tanked even harder.

The latest data now points to a “subdued” Q3 for Bitcoin, owing to uncertainty around Mt. Gox’s distribution of funds.

Mt. Gox Payouts to Keep Bitcoin Subdued

According to the latest update by QCP Capital, Bitcoin’s price is expected to remain relatively calm. The Singapore-based crypto asset trading firm highlighted that the US equity market surged to new highs following Federal Reserve Chair Jerome Powell’s statement that the US is on a disinflationary trajectory.

Despite this bullish momentum in equities, Bitcoin and Ethereum have not experienced any respite, with their prices hovering around $57,000, and $3,000 respectively.

Notably, the options market remained heavily skewed towards the topside, indicating market anticipation of a year-end rally. This is evidenced by significant buying interest in longer-term options at the 100k and 120k strike prices.

However, QCP Capital believes that Bitcoin will have a “subdued” performance for the third quarter primarily due to market uncertainty surrounding the potential supply impact from the upcoming Mt. Gox release.

July Marks Restitution for Mt. Gox Users

The crypto exchange lost 850,000 Bitcoin in investor funds in 2014. $9.4 billion worth of Bitcoin is owed to around 127,000 creditors of Mt. Gox. These creditors have been waiting for over 10 years to recover their funds after the exchange collapsed in 2014 due to multiple unnoticed hacks.

While the latest development of distribution, which is set to begin repaying its users in early July, is a huge relief for the affected users, this has sparked concerns about further selling pressure in the market.

The post QCP Capital Predicts ‘Subdued’ Bitcoin Performance As Mt. Gox Payouts Loom appeared first on CryptoPotato.

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