-
Mt.
Gox’s
bankruptcy
redemptions
are
bearish
for
BCH,
not
BTC,
writes
Presto
Labs’
Peter
Chung. -
Mt.
Gox
will
send
back
to
its
former
customers
$73
million
worth
of
BCH,
worth
over
20%
of
the
token’s
daily
trading
volume.
Fears
that
selling
pressure
from
bankruptcy
redemptions
from
the
estate
of
Mt.
Gox
will
drive
down
the
price
of
bitcoin
(BTC)
is
unfounded,
but
it
could
be
a
bearish
scenario
for
Bitcoin
Cash
(BCH),
Presto
Labs’
Head
of
Research
wrote
in
a
note.
Bitcoin’s
price
continues
to
dip
below
$60,000,
with
over
$200
million
in
liquidations
as
the
trading
day
began
in
Asia
Thursday,
CoinDesk
reported
earlier.
In
addition
to
the
roughly
$9.5
billion
in
BTC
the
former
exchange
will
send
back
to
its
customers,
Mt.
Gox
will
also
send
back
143,000
BCH
worth
around
$73
million.
CoinGecko
data
shows
that
Bitcoin
Cash
has
a
daily
trading
volume
of
$308.8
million,
making
this
redemption
worth
around
24%
of
that
number.
“Our
analysis
shows
that
the
selling
pressure
for
BCH
will
be
four
times
larger
than
for
BTC:
24%
of
the
daily
trading
value
for
BCH
vs.
6%
of
the
daily
trading
value
for
BTC,”
Presto
Labs’
Peter
Chung
wrote
in
a
note,
pointing
out
that
BCH’s
daily
trading
value
is
1/50
of
BTC.
In
an
interview
with
CoinDesk,
Chung
said
BTC
is
projected
to
have
limited
selling
because
anyone
who
wanted
out
could
have
sold
their
claims
on
bankruptcy
claim
markets.
In
the
early
days
of
FTX’s
bankruptcy,
many
traders
who
were
not
optimistic
about
a
quick
bankruptcy
redemption,
did
just
that.
“Weak-handed
creditors
had
plenty
of
chances
to
exit
over
the
last
ten
years
on
the
back
of
aggressive
bidding
from
the
claim
funds,
so
we
can
safely
assume
the
current
group
of
creditors
consists
of
diamond-handed
BTC
bulls,”
Chung
told
CoinDesk
in
an
interview.
Chung
argues
that
traders
are
going
to
treat
the
BCH
“as
an
airdrop”
and
sell
it
immediately
because
Bitcoin
Cash’s
fork
occurred
three
years
after
Mt.
Gox’s
bankruptcy.
“Creditors
are
oblivious
to
BCH’s
cause,”
he
continued.
Long
BTC
perpetuals
paired
with
short
BCH
perpetuals
is
the
most
efficient
market-neutral
way
to
express
this
view,
barring
funding
rate
risk,
Chung
wrote
in
the
note.
“Those
looking
to
lock
in
a
funding
rate
can
explore
other
approaches,
such
as
shorting
term
futures
or
borrowing
BCH
in
the
spot
market,”
he
continued.
BCH
is
currently
trading
at
$360,
down
3.8%,
according
to
CoinDesk
Indices
data.
