IG Markets Analyst: Mt.Gox repayment may not have a significant impact on Bitcoin prices

Mt.Gox plans to repay $8.5 billion worth of Bitcoin, and Tony Sycamore, an analyst at IG Markets, suggests that the repayment to creditors next month may not have as significant an impact on Bitcoin prices as many anticipate. There are too many historical factors to make a specific prediction about the upcoming repayment's effect, but it is estimated that about half of the Bitcoins (worth approximately $4.5 billion) might start entering the market in July. Sycamore believes that much of the so-called Mt.Gox selling pressure has already been reflected in current market conditions. The repayments have been ongoing for quite some time now and are happening against a backdrop of deteriorating market sentiment, technical sell-offs and outflows from Bitcoin ETF funds. Most speculative "hot money" in cryptocurrency has left to chase "broader horizons" with giant stocks like Nvidia and Apple on stock markets.

Additionally, speaking about Bitcoin price trends, Sycamore doesn't believe that current sell-offs will further decline. He points out one reason for optimism over the coming weeks is strong support from 200-day moving averages.