During bear markets, FUD has a far greater effect on the markets than during bull markets, when nobody takes it seriously because they are feeling too euphoric with the price movements. There are many who are concerned that the price could crash thanks to Mt Gox releasing their Bitcoin, but some of these fears may be overblown.
Analysts believe that Mt Gox could crash the Bitcoin price
The concerns around Mt Gox have been ongoing for some years now, with many taking the view that when the Bitcoin is released onto the market (all 140k of it) there will be a huge dump in the price.
There is some good reason to believe this, considering that 140k Bitcoin is no small number and it would take billions of dollars in buying pressure to absorb the decline.
A reminder that today is Mt. Gox day on the #Bitcoin calendar.
It was 9 years ago today on 24 February 2014 that MTGOX said some 750,000 Bitcoin deposited by users and approximately 100,000 Bitcoin belonging to it had disappeared pic.twitter.com/bNannI19LE
— Crypto Rand (@crypto_rand) February 24, 2023
There is good reason to suggest BTC will not crash
However, there are many reasons why the Mt Gox Bitcoin being finally released to creditors may not be such a bad thing after all.
Firstly, it has already been announced that the two largest Mt Gox creditors have chosen to receive their funds in the form of BTC rather than in dollars, which means that the BTC may not necessarily be liquidated at all as they are forced to continue to hodl.
Creditors are being offered the chance of how they would like to receive their disbursements, and it seems that many of the largest creditors would prefer to have their BTC (which they have come to understand well after hodling for so many years) rather than to sell it for dollars and potentially impacting the price downwards.
Moreover, there is a huge deal of liquidity in the BTC markets, and OTC desks would likely not have much of a problem processing such a large amount of BTC sales.
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