QCP Capital Predicts ‘Subdued’ Bitcoin Performance As Mt. Gox Payouts Loom

After a decade of waiting, July may finally bring compensation to users of the now-defunct Mt. Gox exchange. However, market players appear to be nervous about the distributions and fear further sell-offs.

It is important to understand that Bitcoin has already been in a downtrend since early June, failing to build meaningful upward momentum despite modest ETF inflows. On July 3, the price briefly dipped below $60,000, followed by a slight recovery. The next day, the price dropped even further.

The latest data now suggests that the third quarter will be “dull” for Bitcoin, due to uncertainty over the distribution of Mt. Gox funds.

Mt. Gox Payments Will Keep Bitcoin Under Control

According to the latest to update Bitcoin is expected to remain relatively calm, according to a report from Singapore-based cryptocurrency exchange QCP Capital. The Singapore-based cryptocurrency exchange noted that U.S. stocks surged to new highs after Federal Reserve Chairman Jerome Powell said the U.S. is on a deflationary path.

Despite this bullish momentum in the stock markets, Bitcoin and Ethereum have seen no respite, with their prices hovering around $57,000 and $3,000, respectively.

It is worth noting that the options market remained strongly bullish, indicating that the market is anticipating a rally towards the end of the year. This is evident in the strong buying interest in longer-term options at strike prices of 100,000 and 120,000.

However, QCP Capital believes that Bitcoin’s performance will be “subdued” in the third quarter, primarily due to market uncertainty surrounding the potential impact on supply from the upcoming Mt. Gox launch.

July is the compensation month for Mt. Gox users

The cryptocurrency exchange lost 850,000 bitcoins of investor money in 2014. The bitcoins owed to Mt. Gox’s 127,000 creditors total $9.4 billion. Those creditors have been waiting for more than 10 years to get their money back after the exchange collapsed in 2014 due to multiple hacks that went unnoticed.

While the latest development in the distribution process, which is set to start paying out its users in early July, comes as a huge relief to affected users, it has raised concerns about further selling pressure in the market.