Aug 1, 2024
According to Coindesk. Bitcoin's price barely budged after a significant event involving Mt. Gox, the now-defunct Japanese exchange. Late Tuesday, Mt. Gox released another $2 billion worth of Bitcoin tokens, moving closer to completing a $9 billion asset distribution that has been a source of anxiety for investors.
Data from Arkham Intelligence revealed that Mt. Gox-related addresses shifted 47,229 BTC, valued at around $3.1 billion, between internal wallets. Shortly before midnight UTC, they transferred nearly 34,000 BTC, worth $2.3 billion, to new addresses. Analysts at Arkham suggest that BitGo, one of the five crypto service providers, likely received these funds, allowing creditors to reclaim their assets.
After these transactions, the Mt. Gox wallets hold about $3 billion in BTC, a significant drop from the $9 billion reported last month.
In the past, such large transfers from Mt. Gox have often led to price drops in Bitcoin. However, this time, the price showed remarkable resilience, suggesting that traders may have moved past the fears of a market sell-off. Bitcoin briefly dipped 0.4% from $66,000 during the Asian trading session but quickly recovered to around $66,500 by the time the U.S. markets opened.
The ongoing distribution of $9 billion in Bitcoin, along with a smaller amount of Bitcoin Cash, is a legacy of Mt. Gox's collapse in 2014 due to a major hack. This distribution has been a lingering concern for the market, with worries that creditors might sell their assets, potentially causing price drops. The Mt. Gox trust began distributing assets in July, sending tokens to exchanges like Kraken and Bitstamp for those creditors choosing digital assets over cash.
A recent report from Glassnode, a blockchain analysis firm, described this event as potentially marking the end of a significant overhang on the crypto market. The report noted that there was only a minor increase in Bitcoin selling activity on Kraken and Bitstamp, as indicated by a measure called cumulative volume delta (CVD), which tracks the difference between buying and selling volumes on exchanges.
This minimal reaction suggests that many creditors might be holding onto their Bitcoin rather than selling it, possibly reflecting a long-term investment mindset despite the sudden availability of their funds.
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