Bitcoin price falls below $68,000 following transfer worth $9.6 billion from Mt. Gox cold wallet
The price of bitcoin fell below $68,000 following a significant transfer from a Mt. Gox cold wallet.
Early on Tuesday, Mt. Gox appeared to have transferred out bitcoin worth at least $9.6 billion from its cold wallets, according to data from Arkham Intelligence.
Bitcoin's price has decreased by over 1.5% in the past 24 hours and was changing hands for $67,818 at 10:17 a.m. ET, according to The Block’s Price Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, increased by 1.42% to 145.45 in the same period.
Expectation of broader trend higher
However, QCP Capital analysts said that a sudden bout of "supply anxiety" will likely be only a blip in a broader upward trend towards the end of the year.
Tuesday's QCP Capital report outlined three reasons to remain bullish on bitcoin in the medium to long term.
"A stronger equity markets led by counters like Nvidia should pull crypto prices higher, crypto is seeing unprecedented political support in the U.S., and we expect strong demand for the ether spot exchange-traded fund (ETF) once it begins trading, bringing in a fresh capital into crypto," the QCP Capital analysts added
Reduced market volatility over the summer
According to Arbelos Markets co-founder Joshua Lim, some of the major creditors of the defunct Mt. Gox exchange are experienced investment firms specializing in distressed debt who likely use hedging strategies to manage the risks associated with their claims. "Some of the largest holders of Mt Gox claims are sophisticated distressed debt investing firms that have likely been hedging their claims positions as they've accumulated them and into a possible distribution," Lim told The Block.
He added that an anticipated increase in cryptocurrency supply from the Mt. Gox creditor payouts and the FTX estate could temper a market upswing over the medium term, resulting in a less volatile market that will trade within a narrow range over the summer.
