The recent news regarding the restitution of Mt. Gox users has created a sense of uncertainty in the market. Bitcoin prices have been on a decline since the beginning of June, failing to gain any meaningful upward momentum despite ETF inflows. With the price falling under $60,000 on July 3rd, followed by another drop the next day, investors are on edge about further sell-offs.
According to the latest data from QCP Capital, Bitcoin’s price is expected to remain relatively calm in Q3. Even though the US equity market has been surging to new highs, Bitcoin and Ethereum have not seen any significant recovery, with prices hovering around $57,000 and $3,000 respectively. The options market reflects anticipation of a year-end rally, with buyers showing interest in longer-term options at the 100k and 120k strike prices.
The Mt. Gox exchange lost 850,000 Bitcoin in 2014, amounting to $9.4 billion owed to around 127,000 creditors. The long-awaited distribution of funds set to begin in early July brings a sense of relief to affected users, but it also raises concerns about potential selling pressure in the market. The uncertainty surrounding the impact of Mt. Gox’s release on the overall supply of Bitcoin has led to predictions of a subdued performance for the third quarter.
Despite the positive news of restitution, market players remain cautious about the future of Bitcoin prices. The fear of further sell-offs and the potential effects of Mt. Gox’s distribution of funds have cast a shadow over the market. While the options market suggests optimism for a year-end rally, the current prices of Bitcoin and Ethereum reflect a lack of bullish momentum.
The restitution of Mt. Gox users may have a significant impact on Bitcoin prices in the coming months. Market uncertainty, coupled with fears of further sell-offs, has created a sense of caution among investors. The subdued performance predicted for the third quarter highlights the need for careful monitoring of the market in the face of upcoming developments.