Bitcoin (BTC-USD) prices fell sharply in Friday's trading session, triggered by Mt. Gox's initiation of customer repayments, which has sparked fears of a potential sell-off in crypto markets. Token Bay Capital Founder and Managing Partner Lucy Gazmararian offers her insights on the outlook for the cryptocurrency.

Gazmararian notes that the Mt. Gox repayment event has been "tracked quite thoroughly in Bitcoin circles" and was largely "anticipated." She suggests that "any selling [in bitcoin] is likely to be staggered" rather than occurring all at once. Moreover, she questions whether significant selling will materialize at all, stating, "people are likely to hold bitcoin for the longer term."

Entering the summer season, Gazmararian predicts "a quieter" trading period, particularly for bitcoin. However, she emphasizes that the real test lies ahead: "The big question is what's bitcoin going to do when everyone comes back to work in the fall, and the markets start picking up again. That's really when we can actually tell if bitcoin's going to be in a deeper correction than is actually typical for most of the cycle."

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This post was written by Angel Smith