Happycoin.club - Upcoming payouts Mt. Gox continues to excite the crypto community, and for good reason, as 137,890 BTC worth $9.4 billion will be sent to the wallets of lenders. Considering that in 2014 the Bitcoin rate ranged from $200 to $1000, fears that the coins will flood the market are not unfounded.
To answer this question more definitely, it is advisable to remember who the long-term and short-term coin holders are.
Long-term investors hold their Bitcoins for more than 155 days. They are generally considered more psychologically stable and less prone to panic selling during market downturns.
Short-term investors have bought Bitcoin over the last 155 days. They typically react quickly to market news and events and sell in response to negative sentiment.
Specifically, over the past five months, the Grayscale Bitcoin Trust and long-term holders have sold approximately 1 million BTC. As we can see, the market has shown amazing resilience to these sell-offs. Let’s add that Mt.Gox’s payments to its creditors will be 1/10 of 1 million BTC sold.
According to research firm Glassnode, the number of Bitcoin addresses holding coins for more than 5 years has reached a new low, suggesting that some long-term investors are taking profits.
Compared to this larger sell-off, the impact of the Mt. Gox will be much less significant. In addition, not all lenders who receive their BTC will immediately sell it, let alone the fact that distribution has not yet formally begun.
It is reasonable to expect short-term volatility due to future sales, but the market has absorbed large amounts of BTC more than once, even before the launch of spot Bitcoin ETFs in the United States.
