Bitcoin Market Faces Potential Sell Pressure Amid Mt Gox Payouts
Over one-third of the Bitcoin owed to the creditors of the defunct Mt Gox exchange has already been distributed, yet large Bitcoin holders remain undeterred, continuing their buying spree.
According to a July 17 post by CryptoQuant on X, more than 36% of the Bitcoin owed to Mt. Gox creditors has been disbursed. The post stated:
“The trustee holds 141,686 BTC, which will be distributed over time. With yesterday’s transaction, 36% of the Bitcoin has been moved to their former users.”
There is growing concern among crypto investors about the potential sell pressure that could arise from the Mt. Gox repayments and its possible impact on Bitcoin’s price.
Approximately 127,000 Mt Gox creditors are owed more than $9.4 billion worth of Bitcoin, and they have been waiting for over a decade to recover their funds.
Bitcoin Whales Continue to Accumulate
Despite the looming sell pressure from Mt. Gox creditors, large Bitcoin holders, known as whales, are continuing to accumulate. On July 17, a savvy whale purchased 245 BTC worth nearly $16 million. This address has only traded Bitcoin twice in the past year, netting over $30 million in profits from these trades, according to a July 17 post by Lookonchain on X.
“From Aug 9 to Dec 18, 2023, he bought 718 BTC at $29,385 and sold at $41,953, making $9M. From Feb 7 to Jun 20, 2024, he bought 1,181 BTC at $48,822 and sold at $66,792, making $21.2M.”
Investors often monitor whale buying patterns to gauge the market’s health and identify potential long-term investment opportunities.
Will 99% of Mt. Gox Creditors Sell Their Bitcoin, or Only the ‘Paper Hands’?
Finance analyst Jacob King suggests that up to 99% of the creditors might be inclined to sell their BTC from the defunct exchange, especially given that Bitcoin’s value has surged by over 8,500% in the decade since Mt. Gox’s collapse.
However, popular on-chain analyst ZachXBT believes that only the weakest holders will sell, causing only short-term selling pressure. In a July 16 post on X, ZachXBT wrote:
“I expect CT (read as the softest of the men, soyest of soy) to react to the first few 5k BTC+ transfers to CEX. Transfers on-chain (shuffle of coins within wallets) do fuck all.”
Large sell pressure entering the market can significantly impact Bitcoin’s price, which has recently bounced back from a month-long downtrend.
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