Long Bitcoin and Short Bitcoin Cash to Benefit From Mt. Gox Repayments: Trader
Singapore-based trading firm Presto Labs recommends clients to bet on Bitcoin (BTC) and against Bitcoin Cash (BCH) to profit from the ongoing Mt. Gox repayments. The defunct exchange Mt. Gox began its repayments to creditors last week, with $73 million worth of BCH and $9 billion worth of BTC set to be distributed between July 1st and October 31st, 2024. Presto Labs suggests that this could shift supply/demand dynamics for BTC and BCH, potentially creating a pair trading opportunity. The firm's analysis indicates that the selling pressure for BCH will be four times larger than for BTC. Presto also assumes that early Bitcoin investors are more likely to hold part of their repayments, while the weaker investor base of BCH could see 100% sold in the near term.
