Beginning in early July, the defunct crypto exchange – Mt. Gox – initiated repayments to creditors affected by the 2014 hack. While Kraken has completed the distribution of all the Bitcoin and Bitcoin Cash owed to Mt. Gox creditors, the former’s price remained stable.
This could be due to the fact that creditors on Kraken have refrained from offloading their tokens.
Mt Gox’s repayments had sparked significant concerns among crypto investors, who feared that many of the creditors would sell their BTC stash, potentially leading to a sharp drop in prices as seen during the selling spree of confiscated BTC by Germany’s Saxony state.
CryptoQuant’s latest analysis, however, sheds light on an interesting behavior of Mt.Gox creditors as they receive their long-awaited Bitcoin refunds. Contrary to concerns about a potential market dump, the on-chain crypto analytic platform revealed a significant increase in BTC withdrawals from Kraken, suggesting a strong “hodling” sentiment among recipients.
Over the past 24 hours, more than 5,000 BTC, worth approximately $329 million, have been moved from the crypto exchange to cold wallets. This movement indicates that affected users are choosing to store their Bitcoin securely rather than selling immediately.
Despite the relatively modest volume, this trend could be a positive signal for the market, reflecting confidence and long-term investment strategies among these Bitcoin holders.
Furthermore, CryptoQuant CEO Ki Young Ju revealed that Kraken’s trading volume has not witnessed any notable spikes, indicating that creditors are not engaged in selling.
“There has been no significant spike in hourly spot trading volume dominance or BTC outflows on Kraken since then. We need to wait for the Asian time zone, but it’s a positive sign so far.”
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