July may finally bring recompense to users of the now-defunct Mt. Gox exchange, after ten years of waiting. Nonetheless, it seems that market participants are nervous about the distributions and worry about more sell-offs. It’s critical to realise that, despite little inflows from ETFs, Bitcoin has already been declining since the start of June and has not been able to generate any significant upward momentum. The price briefly dropped below $60,000 on July 3rd, but it then slightly increased. The price plummeted considerably further the next day. Because of the uncertainties surrounding Mt. Gox’s fund distribution, the most recent statistics indicates that Bitcoin will have a “subdued” Q3.

Mt. Gox Payouts to Keep Bitcoin Subdued

The most recent report from QCP Capital indicates that there should be little movement in the price of bitcoin. The crypto asset trading company based in Singapore pointed out that after Federal Reserve Chair Jerome Powell declared that the US was headed towards deflation, the US equity market shot up to all-time highs. In spite of the current optimistic trend in stocks, there has been no pause in the price of Bitcoin and Ethereum, which are currently trading at $57,000 and $3,000, respectively.

Interestingly, there was still a significant topside bias in the options market, suggesting that investors were expecting a year-end rally. Considerable purchasing interest in longer-term options at the 100k and 120k strike prices is indicative of this. But according to QCP Capital, the market’s apprehension about the possible supply impact of the impending Mt. Gox release will be the main reason for Bitcoin’s “subdued” performance in the third quarter.

July Marks Restitution for Mt. Gox Users

In 2014, the cryptocurrency exchange lost investor cash totaling 850,000 Bitcoin. Approximately 127,000 creditors of Mt. Gox are owed $9.4 billion worth of Bitcoin. After the exchange failed in 2014 as a result of numerous undetected hacks, these creditors have been waiting more than ten years to get their money back. The most recent distribution development has raised concerns about additional selling pressure in the market, even if it is expected to start repaying its users in early July, which is a big comfort for the impacted users.