Finst

Bitcoin crash after Mt.Gox payouts unlikely, UBS says

Investors have been worried for a while about a drop in Bitcoin's price after the Mt. Gox payout ruling.

By Finst News
• 3 min read
Bitcoin crash after Mt.Gox payouts unlikely, UBS says

Investors have been worried for some time about a drop in Bitcoin's price after the Mt. Gox payouts ruling. The Swiss UBS bank thinks differently.

The crypto community is watching closely for payouts to Mt. Gox creditors. The deadline was recently moved to September 2023. About 142,000 BTC could be paid out to investors who bought Bitcoin before the exchange went bankrupt in 2014. Since these Bitcoin holders are theoretically sitting on huge unrealized gains, some crypto traders fear a crash.

UBS says no

UBS says no, according to a bank report. The Swiss bank does not expect a large amount of Bitcoin to actually hit the market. UBS bases this on two different reports. The bank cites two different creditors who consciously opted out of the payout option in fiat currencies. This supports the crypto confidence of the two investors, according to the bank. Moreover, the two creditors alone accounted for 20 percent of the total payout volume. The bank assumes other investors will follow suit.

In general, the exact market reaction to the payouts is hard to predict, UBS writes further. The amount of BTC released appears far less concentrated than previously thought, according to the report.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.