Bitrabo Editorial
Bitcoin’s stability is currently in question as it shows a pattern in the daily chart. Recently, the leading cryptocurrency surged by about 30%, jumping from $53,500 to around $70,000 over the weekend.
Mt. Gox Financial Burden Lifted, Providing Relief for Bitcoin
As prices stabilize and encounter resistance near the significant $70,000 mark, analysts from Glassnode believe that Bitcoin is entering a new phase. They noted that the recent redistribution of BTC by Mt. Gox creditors has alleviated a long-standing burden on the industry for almost a decade.
Despite initial concerns regarding the impact of Mt. Gox creditors distributing billions of BTC on the market, the outcome was positive. The market demonstrated its resilience by absorbing the coins, underscoring a pivotal moment in the industry’s history.
Glassnode reported that over 59,000 BTC has been dispersed to hack victims through designated exchanges like Kraken and Bitstamp. This distribution is part of the 141,686 BTC recovered from hackers, with plans to allocate the remaining balance in the near future.
While some relief was felt with the partial redistribution of Mt. Gox assets, the reaction of prices in upcoming sessions remains uncertain. Currently, Bitcoin’s price movement is limited between $60,000 and its all-time high of approximately $74,000, with critical resistance levels at $70,000 and $72,000.
If bulls succeed in driving prices higher, breaking past the $72,000 threshold will be crucial as it represents a significant resistance point from May and June, marking a path towards new all-time highs.
The US Government’s Impact on Bitcoin
Amidst the prevailing optimism, Bitcoin prices experienced a decline following the US government’s movement of nearly $2 billion worth of BTC, as reported by Arkham Intelligence data. The transfer of 30,000 BTC, subsequently split into two transactions, sent shockwaves through the BTC market, leading to a price retreat.
Initial concerns arose that the government intended to liquidate the assets not long after former President Donald Trump expressed plans to retain BTC as a strategic asset. However, speculations emerged that the transfer was geared towards placing the coins under custody. Reports mentioned that the US Marshals Service engaged Coinbase Prime to safeguard and manage its extensive digital asset holdings.
According to data from Bitcoin Treasuries as of July 30, the United States holds over 207,000 BTC, primarily seized from criminals and violators of the law, positioning it as the largest holder. China follows closely behind with 194,000 BTC in its reserves.