Presto Labs: Bitcoin Repayments Won't Sink BTC, But BCH at Risk

IconCryptoNewsTerminal Staff04 Jul, 2024

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Presto Labs: Bitcoin Repayments Won't Sink BTC, But BCH at Risk

Presto Labs, a prominent quantitative trading firm in Asia, believes that the upcoming Bitcoin (BTC) reimbursements from Mt. Gox won't cause a significant price decline for the cryptocurrency. However, the firm anticipates that Bitcoin Cash (BCH) may suffer as a result of the repayments. Mt. Gox, a defunct cryptocurrency exchange, is expected to begin reimbursing its creditors this month. The reimbursements will include approximately 142,000 BTC, 143,000 BCH, and $6.9 billion in Japanese yen. Presto Labs highlighted that the amount of BCH being repaid by Mt. Gox constitutes about 24% of the cryptocurrency's daily trading volume. This suggests that the selling pressure on BCH could be four times higher than on BTC, whose repayments represent less than 6% of its daily volume. The firm further noted that while BTC is widely held by long-term investors, BCH is predominantly held by Mt. Gox creditors who are likely to view the repayments as an unexpected gain and sell their coins immediately.

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