Bitcoin
Bitcoin (BTC) Price Shrugs Off Another $2 Billion Mt. Gox Distribution
Bitcoins (BTC) the price barely budged after Mt. Gox, the now-defunct Japanese exchange, unloaded another $2 billion worth of tokens on Tuesday night, moving closer to completing its $9 billion asset distribution that has been a major source of concern for investors.
Blockchain data from Arkham Intelligence shows that addresses linked to Mt. Gox moved 47,229 BTC worth approximately $3.1 billion between internal wallets and then transferred nearly 34,000 BTC worth $2.3 billion to new addresses shortly before midnight UTC on Tuesday. Arkham analysts said the recipient was likely BitGo, the last of five cryptocurrency service providers where creditors will be able to recover their funds.
Following today’s moves, Mt. Gox wallets held $3 billion worth of BTC, down from $9 billion last month, according to data from Arkham.
Previous instances Large transfers from Mt. Gox triggered price declines, but today’s steady price action signals that traders may have overcome fears of selling pressure. Bitcoin fell 0.4% from $66,000 immediately after the transaction during the Asian trading session, but later recovered to around $66,500 by U.S. time.
The distribution of a total of $9 billion in bitcoins – and a smaller amount of bitcoin cash (BCH) – Mt. Gox, once the largest bitcoin exchange before it imploded in 2014 due to a hack, has weighed on cryptocurrency market sentiment as investors worry that creditors are selling assets to realize profits from 10 years of price appreciation. The fund that manages Mt. Gox’s assets began distributing assets in July by sending tokens to exchanges including Kraken and Bitstamp to creditors who opted to receive their claims in digital assets rather than fiat money.
“From a psychological perspective, this represents the final chapter in a major market overload on the industry,” Glassnode said. report said this week.
Glassnode analysts examined the cumulative volume delta (CVD) on Kraken and Bitstamp, and saw only a small increase in BTC selling following the days when lenders received tokens on the platforms. CVD measures the net difference between spot buying and selling volumes on centralized exchanges.
“This adds a bit more evidence to our thesis that creditors may be best viewed as having the mindset of long-term holders for now,” the report added.