Fred Krueger, a prominent analyst and Bitcoin advocate, recently discussed the potential impact of Mt Gox’s Bitcoin distribution on the market price. It is estimated that approximately 100,000 Bitcoins will be distributed, with 65,000 BTC going to individual users and at least 6,500 BTC being liquidated. However, Krueger believes that the actual number could be as high as 13,000 BTC.
To put this into perspective, the amount of Bitcoin being distributed is roughly the same as what MicroStrategy purchased for $780 million just a few days ago. Despite this significant amount, Krueger notes that the recent purchase by MicroStrategy had little impact on the market. The distribution of Bitcoin by Mt Gox is set to start in July, but the exact schedule is still unknown. This uncertainty adds another layer of complexity to the market.
Krueger argues that the market has already factored in the upcoming distribution by Mt Gox. Bitcoin’s market value dropped by $120 billion last week, which indicates that the market has already priced in the distribution. Even using a 40x multiple, Krueger believes that the market has not only accounted for the Mt Gox distribution, but has exceeded it by a wide margin.
It is important to note that this information is not intended as investment advice. The distribution of Bitcoin by Mt Gox will have an impact on the market, but Krueger suggests that the market has already adjusted for this event. The distribution may take several months to complete, further adding to the uncertainty surrounding the market.
Overall, Fred Krueger’s insights provide valuable perspective on the potential impact of Mt Gox’s Bitcoin distribution on the market price. While the distribution of Bitcoin by Mt Gox will have an effect on the market, it appears that the market has already taken this into account. As with any investment decision, it is important to conduct thorough research and consider all factors before making any decisions.
