JPMorgan: Mt. Gox Creditors to Get Rid of Bitcoins Received

The defunct crypto exchange Mt. Gox is set to start distributing bitcoin refunds to its creditors in the coming month. This could initially put pressure on the market as the creditors are expected to sell some of their bitcoin holdings.

However, JPMorgan analysts believe that the market may recover from this pressure in August. In a report released on Wednesday, JPMorgan analysts, led by Nikolaos Panigirtzoglou, noted that creditors of Gemini’s Earn product likely sold a portion of their crypto assets received last month.

They predict that a similar situation may occur in July with Mt. Gox creditors. In May, creditors of Gemini’s Earn product received $2.18 billion of their digital assets.

The analysts also suggest that some of these creditors, who are mostly retail customers, have likely taken profits in the past few weeks as the bitcoin price has significantly increased since the assets were first suspended on November 16, 2022.