UNCHAINED: Why the Mt. Gox Repayments May Not Hurt the Bitcoin Price Much

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4.7 • 698 Ratings

🗓️ 28 June 2024

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Galaxy’s Alex Thorn explains why the Bitcoin repayments will likely have a smaller impact on the Bitcoin price than feared. Plus, he gives a projection for inflows into spot Ethereum ETFs, and says a Solana ETF has a hard path to approval. Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Castbox, Amazon Music, or on your favorite podcast platform. Ten and a half years after filing for bankruptcy, Mt. Gox is finally set to disburse 142,000 Bitcoin worth nearly $9 billion to creditors between July and October. Market concern has been growing over the potential impact on Bitcoin prices, but Alex Thorn, head of research at Galaxy, explains why only a small fraction of those bitcoins will be sold. He also discusses the implications of this redistribution on the market, the potential success of Ethereum ETFs, and the chances of a Solana ETF approval. Show highlights: 0:26 Why Alex estimates the amount of bitcoins that creditors sell will be a tiny fraction of the 142,000 to be repaid 11:35 What market shocks could arise from Mt. Gox creditors receiving billions in Bitcoin, and why he believes Bitcoin Cash is the real wild card 16:18 Whether Ethereum ETFs could be as successful as Bitcoin ETFs in attracting investors 21:35 Whether potential outflows from Grayscale's Ethereum Trust will dampen the excitement around Ethereum ETFs 23:38 How the combination of Mt. Gox repayments, Ethereum ETFs, and German and American government Bitcoin sales might affect crypto prices 26:03 The chances the SEC approves a spot Solana ETF Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! iTrustCapital Polkadot Guest Alex Thorn, head of research at Galaxy Previous appearance on Unchained: How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection Links Mt. Gox. Unchained: Crypto Market Sees $300 Million Liquidated as Bitcoin Briefly Drops Below $59,000 CoinDesk: Mt. Gox to Begin Repayments in July Governments selling: Unchained: US Government Sends $241 Million in Bitcoin to Coinbase: Arkham Cointelegraph: German gov’t offloads 900 Bitcoin, 400 BTC sent to Coinbase and Kraken Solana ETF Reuters: Investment manager VanEck files to list first spot Solana ETF in US | - Unchained Podcast is Produced by Laura Shin Media, LLC. Distributed by CoinDesk. Senior Producer is Michele Musso and Executive Producer is Jared Schwartz. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

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0:00.0	Thanks for listening to Unchained, your no-hype resource for all things crypto on the CoinDesk Podcast Network.
0:06.5	You can also listen to the episodes on the Unchained feed earlier if you subscribe there.
0:11.7	Plus, check out all our content on our website, Unchained Crypto.com.
0:16.8	Who are the individuals that are getting the 64,000 Bitcoin in our thing?
0:21.6	Now, we don't know, right?
0:23.4	I mean, this is the big question.
0:25.0	And keep in mind, like, if the distribution agents are BitCo, Cracken, and BitStamp,
0:30.7	Bitco is really institutional only.
0:32.6	So I assume that's probably where, like, the funds or maybe businesses that have claims
0:37.2	are going to
0:37.9	receive. Most of the individuals are probably getting this to deliver directly into a trading
0:42.8	capable crackin or bit stamp account. So if you want to sell upon receipt, it's going to be pretty
0:48.4	easy, right? Like I think it's just like push a button. It should show up like right into a crackin or
0:53.4	bit stamp trading account.
0:54.9	So the game here to determine how much of that 65, or obviously to come up with an estimate,
0:59.9	right? We don't know, right? This is all sort of assumptions based and there's research behind it.
1:04.1	But the question is, what is the nature of these people? Like, I can tell you one thing,
1:08.0	they were early bitcoins, right? Mount Cox declared bankruptcy in 2014.
1:12.2	So these are people that owned or moved into Mount Cox custody, Bitcoin, 10 years ago, right?
1:18.8	So we know they're early Bitcoiners.
1:20.7	Now, I don't know, I don't know that many people who really like Bitcoin that eventually start not liking it.
1:26.3	Most likely, they're still really into Bitcoin.
	...

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