Report: The impact of Mt.Gox's bankruptcy redemption on BCH is greater, the selling pressure on BCH will be four times larger than BTC

PANews reported on July 4th, according to CoinDesk, Peter Chung, the research director of Presto Labs wrote in a report that concerns about the selling pressure brought by Mt.Gox's bankruptcy redemption causing Bitcoin prices to fall are unfounded. However, this could be a bearish situation for Bitcoin Cash (BCH). The report stated: "Our analysis shows that BCH's selling pressure will be four times greater than BTC: 24% of BCH's daily trading volume vs. 6% of BTC's daily trading volume." He pointed out that BCH’s daily transaction volume is one-fiftieth of BTC’s.

In an interview, Chung said he expects limited sell-offs for BTC because anyone who wants to exit can sell their claims on the bankruptcy claim market. Over the past decade, due to active bidding from claim funds, vulnerable creditors have had many opportunities to exit. Therefore it can safely be assumed that current creditor groups consist of firm bullish holders of BTC. Traders will consider BCH as "shorting" and immediately sell off since BCH forked three years after Mt.Gox went bankrupt. Unless there is funding rate risk involved, pairing long positions in BTC perpetual contracts with short positions in BCH perpetual contracts is the most effective market-neutral way to express this view. Those wishing to lock in funding rates can explore other methods such as shorting short-term futures or borrowing BCH in spot markets.