As a seasoned crypto investor with a knack for reading market trends and a keen eye for spotting opportunities, I must say that the recent developments surrounding Mt Gox and Bitcoin have filled me with optimism. The fact that over 75% of the Mt Gox wallet’s Bitcoin holdings have been distributed to creditors significantly reduces the risk of a major market crash.
Approximately 75% risk of another Bitcoin crash due to the Mt Gox repayments has diminished, according to Arkham Intelligence’s recent analysis. The worry among institutional and individual investors about a massive market collapse following the commencement of BTC repayments by the Mt Gox Trustee in July this year seems to have lessened.
Mt Gox Wallet Down To 25% Bitcoin Holdings
On August 24, Arkham Intelligence reported that the digital wallets of troubled cryptocurrency platform Mt Gox now hold less than a quarter of their original Bitcoin. This reduction in Bitcoin held reduces the likelihood of further Bitcoin sell-offs or market crashes related to repayment, which significantly strengthens optimistic sentiments among investors.
141,690 Bitcoins were stored in Mt Gox wallets as of 2014, with a peak value of around $10.12 billion according to Arkham data in March 2024. Currently, these wallets contain approximately 32,900 Bitcoins worth about $2.11 billion. Furthermore, it appears that Mt Gox creditors have yet to sell their Bitcoin holdings and might not do so given the current bull market conditions.
As the U.S. government’s Bitcoin sale remains the primary significant market downturn threat, financial experts argue that the road to $100k becomes even more apparent. Cryptocurrency optimists demonstrated tenacity in the face of selloffs from both the German and U.S. governments, as well as repayments by the exchange.
More Factors Suggesting BTC Price Rally
Approximately 109,000 Bitcoins, currently valued at approximately $6.6 billion, have been distributed to creditors by Mt Gox since July. This distribution is notable given that the price of Bitcoin has surpassed $60,000, a level it fell below multiple times in recent months following its recovery.
After positive signs of potential interest rate reductions from the FOMC Minutes and a speech by Fed Chair Jerome Powell, both institutional and individual investors are becoming increasingly optimistic. It seems that US Fed officials are also expressing more enthusiasm regarding interest rate decreases, suggesting that the Federal Open Market Committee may opt for a shift in monetary policy during their September meeting.
In the upcoming period, traders anticipate the emergence of the ‘Golden Cross’ pattern since it appears that the 50-day moving average will cross over the 200-day moving average. This crossover suggests a potential long-term uptrend or bull market scenario.
To add to that, last Friday, US spot Bitcoin Exchange-Traded Fund (ETF) recorded net inflows worth $252 million. This brings the weekly total to a staggering $506.4 million. Furthermore, for seven consecutive days, these 11 Bitcoin ETFs have seen inflows, suggesting a strong possibility of a substantial Bitcoin rally in 2021.
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2024-08-24 14:51