Why the Mt. Gox Repayments May Not Hurt the Bitcoin Price Much - Ep. 666

Unchained

Laura Shin

News, Tech News, Business News

4.5 • 1.3K Ratings

🗓️ 28 June 2024

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

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: 00:00 Intro 02:04 Why Alex estimates the amount of bitcoins that creditors sell will be a tiny fraction of the 142,000 to be repaid 13:35 What market shocks could arise from Mt. Gox creditors receiving billions in Bitcoin, and why he believes Bitcoin Cash is the real wild card 18:18 Whether Ethereum ETFs could be as successful as Bitcoin ETFs in attracting investors 23:06 Whether potential outflows from Grayscale's Ethereum Trust will dampen the excitement around Ethereum ETFs 25:07 How the combination of Mt. Gox repayments, Ethereum ETFs, and German and American government Bitcoin sales might affect crypto prices 27:32 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 | Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	who are the individuals that are getting the 64,000 Bitcoin in our thing.
0:04.8	Now we don't know, right? I mean this is the big question and keep in mind like if the
0:09.9	distribution agents are BICO, Cracken, and BITCOMP, BITCO, KRCIN, and BitSTAM.
0:13.9	BICO is really institutional only, so I assume that's probably where
0:18.1	the funds or maybe businesses that have claims are going to receive.
0:22.1	Most of the individuals are probably getting this delivered directly
0:25.0	into a trading capable crack-in or bit stamp account.
0:28.1	So if you want to sell upon receipt, it's going to be pretty easy, right? I think it's just like push a button it
0:34.2	should show up like right into a crack in or bit stamped trading account so
0:38.1	so the game here to determine how much of that 65 or come obviously to come up with
0:42.4	an estimate right we don't
0:43.4	know right this is all sort of assumptions based and there's research behind it but the
0:47.5	question is who what is the nature of these people like I can tell you one thing
0:50.7	they were early biters, right?
0:52.8	Mount Gox declared bankruptcy in 2014.
0:55.3	So these are people that owned or moved into Mount
0:59.3	Gox custody, Bitcoin, 10 years ago, right?
1:02.0	So we know they're early Bitcoiners. Now, I don't know, I don't
1:06.2	know that many people who really like Bitcoin that eventually start not liking it. Most
1:09.7	likely they're still really into Bitcoin. Hi everyone, welcome to Unchained, you're a no-hype resource for all things
1:18.2	crypto.
1:19.2	I'm your host, Laura Shin, author of the cryptopians.
	...

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