Amid the recent recovery from a major price correction of over 25% that sent the price of bitcoin to a 6-month low of $53,500, the market’s largest cryptocurrency has since recovered to trade in the $66,000 to $68,000 range despite the start of payments to Mt. Gox creditors.
Investors encouraged by prospects of a continuation Price appreciationhave adopted a HODL stance, choosing to hold on to their assets rather than sell them following the alleged hack of the bitcoin exchange in 2011.
btc holders hold firm
Data from market intelligence platform Arkham reveals that Mt. Gox initiated a significant movement of $2.47 billion worth of btc to new wallets, facilitating the x.com/ArkhamIntel/status/1816039649841754158″ target=”_blank” rel=”nofollow”>distribution of 5,106 btc worth $335 million to four different Bitstamp addresses on Wednesday.
At the same time, creditors have begun receiving their owed bitcoin and bitcoin Cash (BCH) via US-based cryptocurrency exchange Kraken, as NewsBTC previously reported on Thursday.
Despite initial concerns of a sell-off similar to the events in June, where the German police's wallet was sold over $3 billion in btc impacting bitcoin market performance, CryptoQuant analysis indicates a positive shift.
Related reading
A notable increase in bitcoin withdrawals Kraken’s post-Mt. Gox refunds suggest that affected users are choosing to hold on to their coins and move them from exchanges to cold wallets.
On-chain data compiled by the firm shows that over 5,000 btc worth $329 million have been withdrawn in the past 24 hours alone. exchangescontributing to the current price consolidation and stability of bitcoin price in recent days.
From arkham data This further illustrates Mt. Gox’s ongoing efforts to pay creditors, with over 50,000 btc transferred from the exchange’s wallet out of a maximum of 142,000 btc while it held 90,344 btc valued at approximately $6 billion worth of btc.
Echoing the sentiment of CryptoQuant's findings, Galaxy Digital's Alex Thorn reflexes that most creditors are long-term bitcoin proponents with a deep understanding of the technology.
Thorn says his preference to get bitcoin back rather than opting for a dollar payment means a strong inclination to hold onto his assets rather than trigger a sell-off. Additionally, Thorn notes that the significant capital gains implications of selling bitcoin could deter creditors from liquidating their holdings.
bitcoin Price Analysis
At the time of writing, the largest cryptocurrency on the market is trading at the $66,400 milestone as it is a key cryptocurrency. support level for bitcoin price on track to retest overhead resistance walls with an eye on the all-time high of $73,700 reached on March 14.
Adding to the bullish sentiment surrounding btc’s price performance over the past week, the price may find notable support levels that could prevent further declines in case of a sell-off by some Mt. Gox creditors in the coming days at $65,000.
Related reading
Another key level that bulls need to watch is the $63,500 area, where the 200-day pair is located. exponential moving average (EMA) is located, which, as seen on the btc/USDT daily chart below, has previously accompanied the price on further gains and acted as strong support for btc.
Ultimately, it remains to be seen what stance creditors of the failed Mt. Gox exchange will take in the coming days and weeks, as more refunds are expected to flood creditors' wallets and what impact this may have on the price.
Featured image of DALL-E, chart from TradingView.com
