Mt.Gox BCH Sell Pressure to Outpace BTC by Four Times

Mt.Gox BCH Sell Pressure to Outpace BTC by Four Times

Mt. Gox, the once-largest cryptocurrency exchange, is preparing to distribute its remaining Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors. According to an analysis by Singapore-based trading firm Presto Labs, the sell pressure for BCH could be four times greater than that of BTC. The analysis highlights that from July 1, when distributions begin, until October 31, the sell pressure in BCH could be as much as four times greater than for BTC. While BTC distributions will account for $9 billion and BCH distributions will account for $730 million being returned to Mt Gox victims, the analysis highlights that this would represent about 6% of BTC's global daily trading volume to approximately 24% of BCH's. Presto added that "the most efficient market neutral trade is likely to be long BTC perpetual and short BCH perpetual." This suggests that traders may look to capitalize on the expected sell pressure in BCH by taking long positions in BTC and short positions in BCH. As Mt. Gox prepares to distribute its remaining crypto assets, the analysis from Presto Labs provides valuable insights into the potential impact on the BCH market. Traders should closely monitor the situation and consider the potential for increased sell pressure and volatility in BCH in the coming months. ---