Crypto Markets To See Selling Pressure in July From Mt. Gox Creditors: JPMorgan

As an experienced financial analyst, I believe the potential selling pressure from Mt. Gox creditors could indeed pose a significant downside risk to cryptocurrency markets in July. The announcement of repayments to creditors has already unsettled the market, and it’s reasonable to assume that some creditors will sell their bitcoin as soon as they receive it. With over 142,000 bitcoin set to be distributed, the selling pressure could be substantial.

In a recent research report published on July 7th, JPMorgan warned that cryptocurrency markets could experience significant downside risks due to potential selling pressure from creditors of the defunct Bitcoin exchange, Mt. Gox.

As a financial analyst, I’ve been following the developments surrounding Mt.Gox exchange closely. This week, the trustee made an announcement that they would begin making repayments to creditors in July. However, according to JPMorgan’s latest report, this news has caused unease in the crypto markets due to the possibility that some creditors might sell their bitcoin as soon as they receive it, potentially flooding the market with a large amount of the digital currency, equivalent to around 142,000 bitcoins or approximately $9 billion based on current prices.

As a seasoned analyst, I would rephrase it this way: “Given the latest actions of Gemini’s creditors, who are reportedly selling off some of their recently acquired crypto assets, my team and I believe that this fear is well-founded.”

Based on the bearish trend in crypto markets since May 29th, it can be inferred that some of Gemini’s creditors, primarily retail customers, may have cashed out some of their gains. Following this announcement, Gemini confirmed on May 29th that its Gemini Earn users had received their digital assets back in kind, following the settlement with Genesis.

According to JPMorgan’s assessment, although creditors of Mt Gox face an October deadline for repayment, the majority of these refunds are projected to occur as early as July.

According to the report, if a significant number of liquidations by Mt. Gox creditors take place in July, it is anticipated that crypto markets will experience a sell-off in July, followed by a recovery in August.

As a researcher examining the potential impact of cash payments to FTX’s creditors on the crypto markets, I’ve come across an intriguing observation. It is expected that these payments will be made some time after October 7. While this development could provide some support for the markets, there exists a significant time gap between when potential Mt. Gox creditors may sell and when FTX creditors are likely to reinvest later in the year. This disparity might influence market dynamics and warrant further investigation.