CryptoQuant CEO Ki Young Ju: Mt.Gox’s launch of compensation will not derail the bull market

This site (120btC.coM): The cryptocurrency market rebounded strongly today (17th), getting rid of the worries caused by the outflow of a large amount of Bitcoin from Mt. Gox wallet yesterday (16th). Bitcoin was at 9 o'clock in the morning It once broke through the $66,000 mark, hitting its highest level in the past month. In this regard, the CEO of cryptocurrency analysis agency CryptoQuant also said that Mt. Gox’s initiation of compensation will not derail the bull market.

According to CoinGecko market data, as of the time of writing, Bitcoin’s rise has subsided slightly, falling back to $65,593, an increase of 1.2% in the past 24 hours.

Potential selling pressure from Mt.Gox creditors is "overestimated"

Although the German government's weeks of Bitcoin selling has ended, the market still expects that Mt.Gox creditors will sell at least some of their Bitcoins after receiving compensation. Cashing out in turn triggers selling pressure.

Ki Young Ju, CEO of CryptoQuant, posted that investors’ concerns about the Mt. Gox sell-off are “too excessive” and that even if selling pressure emerges, it will not stop the cryptocurrency market from rebounding. He added: I don’t think (Mt. Gox) this compensation will bring an end to the bullish trend, because creditors will also trade based on market sentiment after receiving Bitcoin. Unlike the German government, Mt. Gox creditors are not forced to cash out, so these Bitcoins will not be fully converted into seller liquidity.

Well-known cryptocurrency analyst Alex Krüger estimates that Bitcoin prices will fall by up to 10% assuming a sell-off occurs within a short period of time.

CoinMetrics analysts also pointed out that if creditors do not collectively cash out simultaneously, it is expected that the market should be able to absorb the compensation distribution of approximately 65,000 Bitcoins (approximately $1.95 billion at current prices) within a few weeks without causing serious disruptions. interference.

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