Report: The impact of Mt. Gox bankruptcy redemption on BCH is greater, and the selling pressure on BCH will be four times that of BTC

ChainCatcher news, according to CoinDesk, Presto Labs research director Peter Chung wrote in a report that concerns about selling pressure from the Mt. Gox bankruptcy redemption leading to a drop in Bitcoin prices are unfounded, but this could be a bearish situation for Bitcoin Cash (BCH).

The report stated: "Our analysis shows that the selling pressure for BCH will be four times greater than that for BTC: 24% of BCH's daily trading volume vs. 6% of BTC's daily trading volume." He pointed out that BCH's daily trading volume is one-fiftieth of BTC's.

In an interview, Chung stated that BTC selling is expected to be limited, as anyone wanting to exit can sell their claims in the bankruptcy claims market. Over the past decade, due to aggressive bidding from the claims fund, vulnerable creditors have had many opportunities to exit, so it can be safely assumed that the current group of creditors consists of strong bulls holding BTC. Traders will view BCH as an "airdrop" and sell it immediately, as the BCH fork occurred three years after the Mt. Gox bankruptcy. Unless there is a funding rate risk, pairing long BTC perpetual contracts with short BCH perpetual contracts is the most effective market-neutral way to express this view. Those looking to lock in funding rates can explore other methods, such as shorting short-term futures or borrowing BCH in the spot market.