PHA leading analyst shared his prediction on how the Mt Gox reset will affect the bitcoin price
Fred Krueger, a leading analyst and one of bitcoin's strongest supporters, recently shared his opinion on the potential impact of the collapse of cryptocurrency exchange Mt Gox on the distribution of bitcoins at the market price.
According to Krueger, Mt Gox will distribute approximately 100,000 bitcoins starting in July. Research firm Galaxy estimates that 65,000 BTC will go to individual users and at least 6,500 BTC will be liquidated. However, Krueger suggests that the actual figure could be twice that, i.e. 13,000 BTC.
To put this in perspective, this amount is roughly equal to the amount MicroStrategy (MSTR) acquired for $780 million just four days ago. Krueger notes that this acquisition had almost no noticeable impact on the market.
Mt Gox's bitcoin distribution will begin in July, but the exact timetable is unknown. The distribution could stretch over several months, adding an element of uncertainty to the market.
Despite the impending distribution, Krueger says that the market has already taken note of the event. Bitcoin's market value fell by $120 billion last week. Krueger believes that even with a 40x increase, the market has not only priced in the Mt Gox distribution, but has far exceeded it.