According to an email sent out to users from Kraken, this large-scale transaction, coinciding with recent reports that Mt. Gox creditors may receive payouts within the next 7-14 days, has caused significant negative sentiment among crypto investors and traders.
Ki Young Ju, founder of CryptoQuant, said that the fear, uncertainty and doubt (FUD) surrounding these large #BTC transactions is overstated in terms of negative investor sentiment towards this event.
the CEO said bitcoin's market capitalization growth is outpacing its realized market capitalization growth, indicating strong demand, Ju said, compared to Mt Gox, where $3 billion worth of BTC was sold despite $224 billion worth of BTC being sold since 2023, He noted that the crypto asset is still growing at more than 350%. Coin sales on #Kraken account for only 1% of realized capital gains in this bull cycle.
One believes the impact of Mt Gox's massive trading is exaggerated, but warned that this is the only downside to the flagship asset, as #bitcoin is susceptible to speculative FUD.
Zhu also drew attention to the massive BTC transfer by the German government, saying that while others panicked and dumped BTC, regular holders bought more coins during the FUD surrounding the event, indicating growing confidence among long-term holders.
In recent weeks, Mt. Gox has been trading a huge amount of BTC as the platform's redemption process reached its long-awaited resolution. Despite these significant developments, Maarten, a market watcher and community manager at CryptoQuant, claims that only 36% of the platform's BTC holdings have been distributed to former users.
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