Many Mt. Gox creditors have finally received their payment in bitcoin (btc) after a decade of waiting. News reports have shown that many creditors have received payment via the US-based cryptocurrency exchange platform Kraken. As expected, the news that more btc could flood the market has raised concerns about its effects on the bitcoin price. Analysts and investors alike have expressed concerns that the influx of bitcoin into the market could result in increased selling pressure, which could push the price of the cryptocurrency lower.
However, data reports have shown that many of the repaid creditors are bitcoin-news/mt-gox-creditors-opt-to-hodl-bitcoin-rather-than-sell-cryptoquant-data-shows/” rel=”nofollow noopener” target=”_blank”>choosing to keep their assets rather than selling them. This trend reflects a prevailing bullish sentiment among these btc holders, who appear to be confident in the cryptocurrency’s long-term potential.
Despite the bullish mindset, on-chain data suggests that Mt. Gov still has enough btc to potentially flood the market. According to Arkham Intelligence, the defunct exchange still holds over 80,000 btc, which is valued at roughly $5.37 billion at the current bitcoin price.
Analysis of Mt. Gox's bitcoin Holdings
bitcoin is still not out of the Mt. Gox quagmire. As the Arkham dashboard shows, Mt. Gox’s btc holdings have fallen from 142,000 btc in early July to 80,000 btc at the time of writing. This indicates that over 62,000 btc have been distributed to its creditors in the past three weeks.
While some creditors have chosen to hold on to their bitcoins, many have undoubtedly jumped at the chance to cash out after a decade of waiting. This wave of selling contributed to a bitcoin-news/massive-sell-off-mt-gox-bitcoin-payout-fears-wipes-out-170-billion-from-crypto-market/” rel=”nofollow noopener” target=”_blank”>Loss of 170 billion dollars of the cryptocurrency market when bitcoin fell below $54,000. Many might argue that this was an overreaction from other market participants as many were quick to reduce their exposure even before creditors began massive sell-offs. Interestingly, bitcoin was under intense pressure from a bitcoin/german-government-50000-btc/” rel=”nofollow noopener” target=”_blank”>Simultaneous sale of seized assets Bitcoins from the German state of Saxony.
The initial fear and uncertainty has since calmed down, though on-chain data shows that Mt. Gox creditors are still receiving payments. Notably, Arkham data indicates that approximately 0.02 btc was Recently posted to eight Bitstamp deposit addresses, another exchange that is used for these refunds. Similarly, CryptoQuant CEO Ki Young Ju revealed that These refunds have not led to an increase in spot trading volume dominance on Kraken.
So far, Mt. Gox has managed refunds effectively, mitigating selling pressure. bitcoin bitcoin-accumulation-whos-been-buying-up-all-the-btc-dumped-by-the-german-government/” rel=”nofollow noopener” target=”_blank”>He has also responded positivelydemonstrating stability and increasing maturity that have helped prevent further declines. Mt. Gox still has 80,128 btc in its wallet. We'll see how the market reacts. As refunds are made In the coming weeks. At the time of writing, bitcoin is trading at $67,085, up 5% over the past 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
