Bitcoin's price took a tumble on Monday after news that the defunct Mt. Gox exchange would return stolen Bitcoin (BTC) to customers. This caused some to worry about a massive sell-off, but some analysts believe it might not be as bad as they feared.
The concern is that releasing over 140,000 BTC back into the market could drive prices down. However, analysts like Alex Thorn from Galaxy Research suggest fewer coins might actually be distributed. His research indicates only around 75% of creditors will take the initial July payout, meaning roughly 95,000 BTC would be released.
Thorn goes further, suggesting that many of these coins will end up with long-term holders who are unlikely to sell. He points out that these creditors have held onto their Bitcoin for years, even through tempting offers, and wouldn't be swayed by short-term gains, especially considering the large capital gains taxes that would apply after Bitcoin's massive price increase.
Overall, while the Mt. Gox news caused a dip, it seems the potential sell-off might be less severe than initially anticipated. This could be good news for those considering entering the Bitcoin market. But remember, Bitcoin's price can fluctuate significantly. Wondering how much 1 bitcoin is worth today? It's currently around $61,134.23.
