Cryptocurrency traders contend that the anticipated selling pressure from Mt. Gox’s recently announced repayments may be considerably less impactful than feared, alleviating market anxieties over an impending selloff.

Sam Callahan, a senior analyst at Swan Bitcoin, expressed confidence in an email to CoinDesk, stating, “The apprehensions about bitcoin’s price impact due to Mt. Gox distributing Bitcoin are likely exaggerated. Creditors inclined to sell their bitcoin have had over a decade to do so by selling their bankruptcy claims to more steadfast, long-term investors.” He further explained, “Moreover, most creditors are expected to hold onto their bitcoin since their cost basis is under $700 per bitcoin.”

Galaxy Research supported this sentiment in a Monday note, revealing that of the 141,000 BTC slated for distribution, 65,000 BTC would be allocated to individual creditors, with an additional 30,000 BTC earmarked for claims funds and a separate bankruptcy. The firm noted, “It’s plausible that most of the BTC received by funds that purchased claims from creditors will be distributed to LPs in kind rather than being sold off,” thus mitigating concerns.

The trustees of the now-defunct crypto exchange announced their readiness to distribute the bitcoin (BTC) pilfered from clients in a 2014 hack, commencing in the first week of July. Although the precise amount of bitcoin to be distributed remains undisclosed, the exchange consolidated 140,000 BTC, valued at approximately $9 billion, from multiple cold wallets into a single address in May.

The anticipation of this potential selling pressure caused bitcoin to plummet by over 4% on Monday, briefly dipping below $60,000 for the first time since early May.

By fostering a sense of reassurance among traders and analysts, the market may experience a more tempered reaction to the forthcoming Mt. Gox repayments, ultimately sustaining bitcoin’s stability amid these developments.

Read more: Crypto Market Faces Turbulence as Mt. Gox Repayments Loom