A leading analyst and Bitcoin Fred Krueger, one of its strongest advocates, was the bankrupt cryptocurrency exchange recently shared its views on the potential impact of Mt Gox’s Bitcoin distribution on the market price.
According to Krueger, Mt Gox will distribute approximately 100,000 Bitcoins starting in July. Research firm Galaxy estimates that 65,000 BTC will go to individual users and at least 6,500 BTC will be liquidated. However, Krueger suggests that the real figure could be twice that, i.e. 13,000 BTC.
To put this into perspective, this amount is roughly the same amount that MicroStrategy (MSTR) purchased for $780 million just four days ago. Krueger points out that this acquisition had little to no noticeable impact on the market.
Distribution of Bitcoin by Mt Gox will begin in July, but the exact schedule is unknown. Distribution may be spread over several months, adding an element of uncertainty to the market.
Despite the upcoming distribution, Krueger argues that the market has already taken this event into account. Bitcoin’s market value dropped by $120 billion last week. Krueger believes that even at a 40x multiple, the market has not only priced, but vastly exceeded, the Mt Gox distribution.
*This is not investment advice.
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