Mt. Gox Doomsday Scenario Involves Bitcoin Cash, Not Bitcoin: Analyst

Mt. Gox’s bankruptcy redemptions are bearish for Bitcoin Cash (BCH) instead of Bitcoin (BTC), according to analyst Peter Chung from Presto Labs. As part of its bankruptcy proceedings, Mt. Gox will return $73 million worth of BCH to its former customers, equivalent to more than 20% of the token’s daily trading volume. However, concerns that the selling pressure from these redemptions will drive down BTC’s price are unwarranted. Chung emphasizes that BTC is anticipated to have limited selling, as those who wanted to exit could have already done so via bankruptcy claim markets. He believes that traders will treat the BCH as an airdrop and immediately sell it, given that the Bitcoin Cash fork occurred three years after Mt. Gox’s bankruptcy. Chung suggests that pairing long BTC perpetuals with short BCH perpetuals is the most efficient way to express this view in the market. BCH is currently trading at $360, representing a 3.8% decline.