Bitrabo Editorial
Mt. Gox, a once prominent crypto platform now defunct, recently conducted a significant transaction involving over 48,641 Bitcoin. This move has sparked speculation about potential repayments to creditors following the company’s bankruptcy years ago. Consequently, the cryptocurrency community is closely monitoring the impact of these large BTC transactions by Mt. Gox.
CryptoQuant CEO Responds to Concerns About Bitcoin Selling Pressure From Mt. Gox
In a notable development, Mt. Gox executed a substantial transfer of 48,641 Bitcoin to a wallet address linked to the San Francisco-based exchange Kraken. This transfer, valued at over $3.10 billion in today’s market, could signify progress in the platform’s bankruptcy proceedings.
Additionally, recent reports suggest that Mt. Gox creditors might receive repayments within the next 7 to 14 days, as indicated in an email from Kraken to its users. However, this news has led to a negative sentiment among crypto investors and traders.
Assuaging concerns regarding the impact of these transactions, Ki Young Ju, the founder of CryptoQuant, believes that the fear, uncertainty, and doubt surrounding Mt. Gox’s BTC transactions are overstated.
While acknowledging the magnitude of Mt. Gox’s transaction, he emphasized that Bitcoin’s market cap growth surpasses its realized cap growth, signaling strong demand. Despite significant BTC sales, Bitcoin has seen a substantial increase, demonstrating resilience even with the sale of Mt. Gox’s BTC.
Although downplaying the implications of Mt. Gox’s transactions, Ju highlighted the susceptibility of Bitcoin to speculative fears, citing it as a potential weakness of the flagship cryptocurrency.
Furthermore, referencing a comparable large-scale BTC transfer by the German Government, Ju noted that while some traders panicked and sold their BTC, long-term holders took advantage of the situation by acquiring more coins. This indicates growing confidence among permanent holders in the market.
Allocations of Mt. Gox BTC Holdings to Creditors
In recent weeks, Mt. Gox has been engaged in substantial BTC transactions related to the anticipated resolution of the platform’s repayment process. Despite these developments, Maarten, a market observer, revealed that only 36% of the platform’s Bitcoin holdings have been distributed to former users.
Maarten made this disclosure following the 48,641 BTC transfer associated with Kraken. This transfer is seen as the initial step in the distribution process for Bitcoin to Mt. Gox’s creditors. The platform currently holds 141,686 BTC, which will be gradually dispersed to creditors.