Impact of debt repayment from Mt. Gox for Bitcoin is still overvalued and will likely be used by whales to buy more BTC at a discount, according to CryptoQuant CEO Ki Young Ju.
In a July 16 post on X, Ki said the impact of selling BTC from Mt. Gox – between $3 billion and $9 billion – is insignificant compared to Bitcoin's total market capitalization increase over the past 18 months.
“Even if $3 billion from Mt.Gox is sold on Kraken, it is only 1% of the current capitalization increase in this bull cycle – liquidity is manageable,” Ki wrote on X.
Source: CryptoQuant CEO Ki Young Ju
Additionally, Ki noted that Bitcoin price is susceptible to negative rumors (“FUD” – fear, uncertainty and doubt) surrounding supposed negative events and is less affected by the actual selling activity behind it.
Ki said that while many investors are "panic selling", "smart money" is continuously buying more Bitcoin.
Ki cited a July 10 post showing data showing “long-term holders” — large individual custodial wallets with no outflows — had accumulated 85,000 BTC in the previous 30 days.
Over the past few weeks, the trustee of Mt. Gox transferred funds from cold wallets to hot wallets several times.
MT. Gox currently holds 138,985 BTC worth about $8.93 billion, according to data from Arkham Intelligence.
On July 5, Japanese cryptocurrency exchange Mt. Gox announced to creditors that it has begun repaying approximately 140,000 recovered Bitcoins to users who lost their funds in 2014 in a massive attack.
However, Galaxy Digital's head of research, Alex Thorn, estimates that only 65,000 of the total 141,000 Bitcoins could be sold on the market, significantly reducing the expected decrease.
Similarly, analysts said that they believe much of the potential selling pressure is related to selling from Mt. Gox has been “pre-priced” and that the worst of BTC price action may be over.
Bitcoin price has increased 13% in the past seven days, bouncing from a two-month low of $53,500 on July 4, and is currently trading at $66,000, according to data from TradingView.
Source: https://tapchibitcoin.io/ca-voi-mua-them-bitcoin-giua-nhung-lo-ngai-ve-mt-gox.html
