Bitcoin Whales Expected to Increase Holdings Despite ‘Overhyped’ Mt. Gox Concerns
Bitcoin Whales– The impact of Mt. Gox’s repayments on Bitcoin is still being overestimated and will likely be utilized by whales to pick up more BTC at a discount, says CryptoQuant CEO Ki Young Ju.
Overestimated Impact of Mt. Gox Sales
In a July 16 post on X, Ki explained that the potential impact of Mt. Gox sales — ranging from $3 billion to $9 billion in BTC — is minimal when compared to the overall increase in Bitcoin’s market capitalization over the past 18 months.
Even if Mt. Gox’s $3 billion is sold on Kraken, it’s just 1% of the realized cap increase in this bull cycle — manageable liquidity, Ki wrote. He added that Bitcoin’s price is more susceptible to speculative FUD (fear, uncertainty, and doubt) around perceived negative events than to the actual fundamental selling activity.
Smart Money Continues to Buy
Ki noted that while many investors are panic selling, the smart money is continuously buying more Bitcoin. He referred to a July 10 post showing data that permanent holders — large individual custodial wallets with no outflows — accumulated 85,000 BTC in the past 30 days.
Mt. Gox’s Holdings and Repayments
Over the last few weeks, the Mt. Gox trustee has transferred funds from cold wallets to hot wallets several times. Currently, Mt. Gox holds 138,985 BTC, valued at roughly $8.93 billion, according to Arkham Intelligence.
On July 5, the collapsed Japanese crypto exchange informed creditors that it had started returning approximately 140,000 recovered Bitcoin to its users, who lost their funds in a major hack back in 2014. However, Alex Thorn, Galaxy Digital’s head of research, estimated that only 65,000 of the total 141,000 Bitcoin would likely hit the market, significantly reducing the expected downside.
Analysts’ Perspectives and Bitcoin’s Price Movement
Analysts told Cointelegraph that much of the potential sell pressure related to Mt. Gox sales was already priced in and that the worst of BTC’s price action was probably over.
Bitcoin’s price has increased by 12% over the past seven days, recovering from a two-month low of $53,500 on July 4. Currently, Bitcoin is trading at $65,154, according to TradingView data.
For the latest in crypto updates, keep tabs on Crypto Data Space.
1 Comment