JPMorgan says Mt. Gox creditors likely to sell part of bitcoin receivables next month

Defunct crypto exchange Mt. Gox will begin distributing bitcoin repayments to creditors next month. These creditors are expected to sell part of their bitcoin receivables, initially pressuring the market but potentially recovering from August onwards, according to JPMorgan analysts.

Last month, creditors of crypto exchange Gemini's Earn product received $2.18 billion of their digital assets in kind. Specifically, they received 97% of these crypto assets on May 29 and the remaining 3% on June 20.

Mt. Gox creditors are set to receive 142,000 bitcoins from July to October worth around $9 billion in today's prices. Although there is an October deadline, the JPMorgan analysts believe that most of the repayments will take place during July. "Assuming most of the liquidations by Mt. Gox creditors take place in July, creates a trajectory where crypto prices come under further pressure in July, but start rebounding from August onwards," the analysts said.

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