As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely monitored the recent developments surrounding Mt. Gox creditors and their repayments in Bitcoin. Having followed the industry for years, I’ve witnessed numerous price corrections and market fluctuations that often lead to uncertainty and fear among investors.
Despite a recent price drop of over 25%, pushing Bitcoin‘s value down to a 6-month low of $53,500, the cryptocurrency has bounced back and is currently trading between $66,000 and $68,000. This recovery occurred despite the commencement of Mt. Gox creditor repayments.
Confident investors, fueled by anticipation of further value growth, have chosen to hold onto their Bitcoins instead of cashing out after the reported 2011 Bitcoin exchange hack incident.
BTC Hodlers Stand Firm
According to market intelligence data from Arkham, Mt. Gox transferred approximately $2.47 billion in Bitcoin (BTC) to new digital wallets on Wednesday. Subsequently, around 5,106 BTC, equivalent to roughly $335 million, was distributed to four different Bitstamp wallets.
At the same time, creditors have begun receiving their due Bitcoin and Bitcoin Cash (BCH) from the US crypto exchange Kraken, as mentioned in a NewsBTC report published on Thursday.
Although there were early apprehensions of another major Bitcoin sale reminiscent of the June incident where over $3 billion in Bitcoin was offloaded, causing market instability, recent data from CryptoQuant suggests a more optimistic trend.
After the Mt. Gox reimbursements, there was a significant surge in Bitcoin withdrawals from Kraken. This indicates that some of the impacted users chose to keep their coins by transferring them from exchanges to personal, offline wallets for safer storage.
According to data from the firm that has been processed on-chain, over $329 million worth of Bitcoin, equivalent to more than 5,000 coins, have been taken out of exchanges in the last 24 hours. This significant withdrawal has likely played a role in the recent price consolidation and stability for Bitcoin over the past few days.
Arkham’s data reveals that Mt. Gox has been making strides to reimburse its creditors, transferring over 50,000 Bitcoins from its wallet, which holds a total capacity of 142,000 Bitcoins. The exchange still retains around 90,344 Bitcoins, equivalent to roughly $6 billion in current value.
In agreement with CryptoQuant’s observations, Alex Thorn of Galaxy Digital notes that the majority of Bitcoin creditors are ardent long-term supporters with a deep comprehension of the underlying technology.
Thorn argues that choosing to keep their Bitcoin instead of receiving a USD payment indicates a strong desire to hang on to their assets rather than selling them off. Furthermore, Thorn notes that the significant tax consequences of selling Bitcoin might deter creditors from cashing out their investments.
Bitcoin Price Analysis
Currently, the largest cryptocurrency, Bitcoin, is valued at around $66,400 during my writing, acting as a significant support level for its price as it aims to challenge the upper resistance barriers and potentially reach its all-time high of $73,700, attained on March 14th.
In the current optimistic outlook for Bitcoin’s price trend, potential support points might emerge around $65,000 to potentially halt any potential selling pressure from Mt. Gox creditors in the upcoming days.
One significant level for buyers to keep an eye on is $63,500, marked by the position of the 200-day exponential moving average (EMA) in the daily BTC/USDT chart below. Historically, this area has played a crucial role in driving price increases and serving as robust support for Bitcoin.
In due time, it will become clear how creditors of the collapsed Mt. Gox exchange will respond as they receive more refunds in the near future. The potential consequences for Bitcoin’s price remain uncertain.
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2024-07-24 21:05