Key facts:
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Compensation is being prepared for those affected by the hacking of the Mt. Gox exchange.
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If the compensated sell their repaid bitcoins, the price of the cryptocurrency might fall.
The main cryptocurrency in the market might suffer a price drop if the more than 140,000 bitcoins (BTC) reinstated by the Mt. Gox hack are sold. As of this writing, it is trading at $21,600, having hit its lowest in over a year three weeks ago.
This was reported by the analyst Healthy Pockets, given that the lawyer behind the hacking of the Mt. Gox exchange announced that the reimbursement of 141,686 BTC to those affected. These are the compensations that the users of said platform will receive for the theft of 850,000 BTC that it suffered 8 years ago, in 2014.
The resolution of the case determined that those affected can receive compensation in BTC, bitcoin cash (BCH) or dollars valued at the time of the hack. Of these options, Pockets indicates that the majority probably choose bitcoin because it is the most profitable.
Such a decision leads him to think that, upon receiving the funds, those compensated from the Mt. Gox hack might sell their bitcoins reinstated. Considering that, he warns that this action might have “serious consequences” for the price of the cryptocurrency. Precisely the value of BTC tends to fall when there is more supply than demand.
For comparison, remember that the recent sale reported in CriptoNoticias of just over USD 10,000 BTC made by miners likely propelled the cryptocurrency’s decline to its lowest in over a year.
Although it should be noted that the fall of bitcoin to USD 17,600, the minimum in more than a year that it touched three weeks ago, was not only due to the sale made by the miners. It was triggered by widespread supply action by investors in the market. In fact, this was also seen in stock shares following the bleak macroeconomic backdrop.
The action of those compensated for the hack of Mt. Gox might impact the price of bitcoin
In this scenario, a sale of more than 140,000 BTC may not affect the price of the cryptocurrency if there is strength in demand at the same time. But if this is not the case, bitcoin might continue down.
Also, it must be considered that Mt. Gox hack payoffs might decide to hold their bitcoins reinstated instead of selling. This action would not generate a negative effect on the price of the cryptocurrency. Therefore, it is necessary to see how they act when receiving the refund and what impact it causes in the crypto market.