bitcoin defies gravity and is surprisingly resilient to a wave of selling pressure from the Mt. Gox distribution.
At the time of writing, btc is not only holding firm above $60,000, but it has also managed to hold above $62,500, a level that is particularly interesting among traders. So far, bitcoin remains in an uptrend, and bullish traders are expecting $66,000 and $72,000 in the coming sessions.
bitcoin daily flow is very low as retail activity remains suppressed
As Mt. Gox creditors are distributing coins to victims of the 2014 hack via exchanges like Kraken, one analyst is pointing to another development.
From the data on the chain, it is possible to x.com/AxelAdlerJr/status/1813465498622874077″ target=”_blank” rel=”noopener nofollow”>appears that the daily btc exchange inflow is unusually low levels, averaging around 30,000 btc. Interestingly, this comes as reports show that Mt. Gox has successfully reimbursed approximately 65% of victims.
<img decoding="async" class="size-full wp-image-310791" src="https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg" alt="Low btc inflows into exchanges | Source: @AxelAdlerJr via x” width=”1024″ height=”576″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>Low btc inflows into exchanges | Source: @AxelAdlerJr via x
The low daily flow of btc means that even if Mt. Gox is moving coins to victims, it is highly likely that its impact on the markets will not be reduced. bitcoin would then continue to rise, potentially breaking through immediate liquidation lines.
x/b18epdDU/” rel=”nofollow noopener” target=”_blank”>x/b18epdDU/” alt=”bitcoin price shows an upward trend on the daily chart | Source: BTCUSDT on Binance, TradingView” width=”1233″ height=”592″/>bitcoin price shows an upward trend on the daily chart | Source: x/b18epdDU/” target=”_blank” rel=”noopener nofollow”>BTCUSDT on Binance, TradingView
At the same time, other data x.com/AxelAdlerJr/status/1813240533415801243″ target=”_blank” rel=”noopener nofollow”>show that retail activity is low, not as expected now that there was fear that Mt. Gox would ruin the market. This means that retailers risk missing out on the opportunity to buy from Mt. Gox victims.
Instead, large institutions, including bitcoin spot ETF issuers, could take advantage and obtain coins from willing sellers.
The cryptocurrency market has matured and Mt. Gox's btc distribution will be absorbed
However, others attribute the low retail activity to the resistance of Mt. Gox victims and their unwillingness to sell. These btc holders were among the early adopters of btc and other cryptoassets.
As a result, they are more likely to be motivated by the coin's value proposition and what it means to hold btc. Most of these entities would prefer to HODL and do not look sell immediatelypropping up buyers.
<img loading="lazy" decoding="async" class="size-full wp-image-310793" src="https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg" alt="The btc market is maturing | Source: @ki_young_ju via x” width=”1024″ height=”576″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=4000 4000w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=1140 1140w, https://technicalterrence.com/wp-content/uploads/2024/07/1721315422_331_Why-is-the-daily-BTC-inflow-to-the-exchange-so.jpg?w=3000 3000w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>The btc market is maturing | Source: @ki_young_ju via x
Beyond this advancement, Ki Young Ju is x.com/ki_young_ju/status/1813277728998609338″ target=”_blank” rel=”noopener nofollow”>convinced The impact of the Mt. Gox distribution is exaggerated. In a post on x, CryptoQuant's CEO said that bitcoin's market cap has been growing rapidlyexceeding the limit reached over the years.
This development points to high demand. To illustrate this fact, prices have increased 3.5 times since 2023, even though more than $224 billion worth of btc was sold. The CEO noted that the markets are maturing and can sufficiently absorb huge selling pressure, regardless of the source.
