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Despite potential sell pressure from Mt. Gox creditors, Bitcoin whales remain undeterred and continue to accumulate.
Over one-third of the Bitcoin owed to the defunct Mt. Gox exchange’s creditors has been distributed, yet large Bitcoin holders persist in their buying spree.
According to a July 17 post by CryptoQuant, more than 36% of the Bitcoin (BTC) owed to Mt. Gox creditors has been distributed. The trustee still holds 141,686 BTC, which will be gradually distributed. CryptoQuant stated, “With yesterday’s transaction, 36% of the Bitcoin has been moved to their former users.”
Crypto investors have expressed concerns about the potential sell pressure that could arise from the Mt. Gox repayment, potentially impacting Bitcoin’s price.
Approximately 127,000 Mt. Gox creditors are owed more than $9.4 billion worth of Bitcoin, and they have been waiting over a decade to recover their funds. Despite this looming sell pressure, large Bitcoin holders, also known as whales, continue to accumulate.
On July 17, a savvy whale bought 245 BTC worth nearly $16 million. This address has only traded Bitcoin twice in the past year, making over $30 million in profit from these trades, as reported by Lookonchain.
From August 9 to December 18, 2023, this whale bought 718 BTC at $29,385 and sold at $41,953, making $9 million. From February 7 to June 20, 2024, the whale bought 1,181 BTC at $48,822 and sold at $66,792, making $21.2 million. Investors often look to whale buying patterns to gauge market health and identify potential long-term investment opportunities.
Finance analyst Jacob King suggests that up to 99% of the Mt. Gox creditors might sell their BTC due to Bitcoin’s substantial value increase of over 8,500% since the exchange’s collapse. However, popular on-chain analyst ZachXBT believes that only the weakest holders will sell, causing only short-term sell pressure.
ZachXBT wrote on July 16, “I expect CT (read as the softest of the men, soyest of soy) to react to the first few 5k BTC+ transfers to CEX. Transfers on-chain (shuffle of coins within wallets) do fuck all.”
Large-scale sell pressure can significantly impact Bitcoin’s price, which has recently recovered from a prolonged downtrend.
By monitoring whale activity and understanding the behavior of Mt. Gox creditors, investors can better navigate the potential impacts on Bitcoin’s market dynamics.