As a seasoned financial analyst with over two decades of experience in traditional markets and the last eight years dedicated to cryptocurrencies, I have witnessed Bitcoin’s remarkable resilience against external pressures firsthand. The latest development involving the Mt. Gox distribution is no exception.
Despite the heavy selling pressure triggered by the Mt. Gox distribution, Bitcoin manages to buck the trend and remains surprisingly robust.
At present, Bitcoin not only surpasses the $60,000 mark but also maintains its position above $62,500 – a significant level for traders. The cryptocurrency has been following an uptrend and optimistic investors are targeting potential gains at $66,000 and $72,000 in the upcoming trading sessions.
Bitcoin Daily Flow Is Very Low As Retail Activity Remains Suppressed
As a financial analyst following the ongoing Mt. Gox bankruptcy case, I’ve noticed an intriguing development: While creditors are in the process of distributing coins to victims of the 2014 hack through exchanges such as Kraken, I am focusing on another aspect of the situation.
Based on data from the blockchain, the daily incoming Bitcoin to exchanges is unusually low, hovering around 30,000 BTC on average. Notably, this occurrence aligns with news that Mt. Gox has managed to compensate approximately 65% of its affected customers.
With a minimal amount of Bitcoin entering the market on a daily basis, it’s unlikely that any coins being transferred from Mt. Gox to victims will significantly affect market prices. As a result, Bitcoin could persist in its upward trend and possibly surpass current resistance levels.
Simultaneously, evidence indicates that retail activity is subpar, contrary to anticipation given the previous apprehensions surrounding Mt. Gox’s potential impact on the market. As a result, retailers may be overlooking the opportunity to purchase from Mt. Gox victims.
Large institutions, such as those seeking to launch a Bitcoin ETF, may seize the opportunity and buy Bitcoin from eager sellers.
Crypto Market Has Matured, Mt. Gox BTC Distribution Will Be Absorbed
Despite this, some people believe that the sluggish retail activity in BTC sales can be explained by the tenacity of Mt. Gox victims. These Bitcoin owners are among the earliest adopters of cryptocurrencies like Bitcoin and have shown reluctance to sell.
As a crypto investor, I believe that institutions and larger entities are primarily motivated by the unique benefits and potential value that a specific coin like Bitcoin offers. They generally have a long-term perspective and are more inclined to hold onto their investments rather than selling right away. This “HODL” strategy contributes to maintaining a stable buying base in the market.
After this sneak peek, Ki Young Ju holds the belief that the influence of Mt. Gox distribution has been exaggerated. In a recent post on X, the CEO of CryptoQuant expressed that the Bitcoin market capitalization has been expanding swiftly, surpassing the realized cap consistently over the years.
Based on my extensive experience in the crypto market, this development strongly indicates a surging demand for Bitcoin. To provide some context, the price has skyrocketed approximately 3.5 times since 2023, despite the sale of over $224 billion worth of Bitcoin. In my view, the maturity of the markets is evident from the fact that they can effectively handle massive selling pressure, regardless of its origin. This trend aligns with my belief in the growing acceptance and integration of cryptocurrencies into our financial systems.
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2024-07-18 08:42