Analysts at CoinShares, a digital asset management firm, suggest that the fears surrounding the repayments related to the collapsed crypto exchange Mt. Gox may be exaggerated. Once the world’s largest Bitcoin exchange, Mt. Gox faced a sudden bankruptcy and substantial coin losses due to theft.

Despite these challenges, the exchange has managed to recover most of its coins and is currently engaged in a protracted bankruptcy process aimed at repaying its former clients. This situation has introduced significant uncertainty into the market, as the potential sale of BTC to satisfy creditors could create substantial selling pressure.

In a recent analysis, CoinShares indicates that many Mt. Gox creditors are likely to retain a majority of their coins to minimize tax liabilities. When sales do occur, the firm anticipates that they will be distributed across multiple crypto exchanges, allowing buying-side liquidity ample opportunity to absorb any selling pressure.

Considering that creditors are expected to receive approximately 15% of the Bitcoin they once held, accounting for the cryptocurrency’s significant price increase since the time of Mt. Gox’s collapse, they stand to realize considerable gains. However, selling immediately could trigger significant tax consequences. Consequently, many creditors are likely to opt for selling only a portion of their holdings or holding onto them temporarily.

Moreover, the prolonged nature of the claims process, during which creditors have received multiple offers from claims buyers for a USD payout, suggests that many are inclined to retain their Bitcoin holdings. The uncertain quantity of coins entering the market following the distribution remains unclear, given the lack of a precise estimate.

The distributions are expected to take place across various exchanges, including Bitstamp, Kraken, Bitbank, BitGo, SBI VC Trade, among others, occurring at different times throughout the month. This staggered approach is likely to mitigate the risk of significant simultaneous selling pressures.

Ultimately, CoinShares asserts that while concerns about potential selling pressure persist, the actual impact may not be as severe as feared. As of the latest data, Bitcoin is trading at $60,146.

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