bitcoin-mt-gox-starts-200000-btc/” rel=”nofollow noopener” target=”_blank”>The defunct cryptocurrency exchange platform Mt. Gox Recent bitcoin transfers have continued to raise concerns for the cryptocurrency community, considering the amount of selling pressure they could put on the flagship cryptocurrency. However, Cryptoquant Founder Ki Young Juhas helped ease these concerns, recently explaining why these transactions might not impact the market.
Why Mt Gox's 47,000 btc Purchase Won't Affect bitcoin's Price
In an x (formerly twitter) x.com/ki_young_ju/status/1810367213309682150″ rel=”nofollow” target=”_blank”>mailKi Young Ju outlined three possible scenarios for Mt Gox's bitcoin transactions to explain why they will not affect its price. First, he stated that these bitcoin/bitcoin-further-crash-to-47000/” rel=”nofollow noopener” target=”_blank”>bitcoin Transactions It may have simply been an internal transfer, with the defunct cryptocurrency exchange switching wallets for security reasons.
Secondly, he mentioned that the transaction could have been an over-the-counter (OTC) deal, with such trades designed to not affect the market price. Given the magnitude of Mt Gox's bitcoin holdings, this also seems feasible as the cryptocurrency exchange will seek to facilitate refunds without their actions having severe repercussions on the market.
In the third scenario, Ki Young Ju mentioned that Mt. Gox could have used a brokerage service after the sale was finalized, as these bitcoins did not go through brokers' wallets or exchanges. Founder of Cryptoquant It was also mentioned that 1,500 btc were sent to Bitbank, but there was still no significant increase in trading volume, suggesting that the Mt. Gox sales are unlikely to impact the market.
However, he admitted that 1,500 btc is a relatively small amount, which may have explained the lack of a noticeable increase in trading volume. Ki Young Ju noted that 94,000 btc is available for sell-side liquidity if scenario 3 applies. However, he seemed confident that this was unlikely to be the case, as he mentioned that it is impossible to sell this amount of btc without on-chain movement. Meanwhile, he added that a OTC trading means that the market is risk-free.
Another entity that should still concern us
While Ki Young Ju's analysis suggests that Mt. Gox's transactions are unlikely to impact the market, German Government is another entity that we should be concerned about. They have been dumping their bitcoin holdings since last month, and recent on-chain data suggests that they may not slow down their pace anytime soon.
On-chain analytics platform Arkham Intelligence x.com/ArkhamIntel/status/1810331451348386106″ rel=”nofollow” target=”_blank”>revealed that he bitcoin-news/german-governments-bitcoin-dump-surpasses-195m-as-selling-spree-persists/” rel=”nofollow noopener” target=”_blank”>German Government On July 8, Germany sent over 13,000 btc to several cryptocurrency exchanges and creators, including Coinbase, Kraken, and Bitstamp. Despite these transfers, the German government has yet to receive any response. bitcoin-news/german-governments-bitcoin-dump-surpasses-195m-as-selling-spree-persists/” rel=”nofollow noopener” target=”_blank”>holds more than 27,000 btc ($1.57 billion). This is something to pay attention to, especially if they still plan to dump a significant amount of their remaining holdings.
At the time of writing, bitcoin is trading around $57,500, up more than 3% in the past 24 hours, according to bitcoin/” rel=”nofollow noopener” target=”_blank”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
