Over one-third of the Bitcoin owed to the creditors of the defunct Mt. Gox exchange has already been distributed, yet large Bitcoin holders remain undeterred in their buying spree.
According to a July 17 X post by CryptoQuant, over 36% of the Bitcoin owed to Mt. Gox creditors has been distributed.
The analytics firm stated:
“The trustee holds 141,686 BTC, which will be distributed over time.
“With yesterday’s transaction, 36% of the Bitcoin has been moved to their former users.”
Crypto investors have expressed concern about the potential sell pressure that the Mt. Gox repayments could introduce, potentially causing a downward impact on Bitcoin’s price.
Approximately $9.4 billion worth of Bitcoin is owed to around 127,000 Mt. Gox creditors who have been waiting for over a decade to recover their funds.
Despite the potential sell pressure from Mt. Gox creditors, large Bitcoin holders, known as whales, continue to accumulate.
On July 17, a savvy whale purchased 245 BTC, valued at nearly $16 million.
This address has only traded Bitcoin twice this past year, yielding over $30 million in profit from the trades. According to a July 17 X post by Lookonchain:
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“From Aug 9 to Dec 18, 2023, he bought 718 $BTC at $29,385 and sold at $41,953, making $9M. From Feb 7 to Jun 20, 2024, he bought 1,181 $BTC at $48,822 and sold at $66,792, making $21.2M.”
Investors often monitor 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 creditors could be looking to sell their BTC from the defunct exchange.
This is partly due to Bitcoin’s value having increased by over 8,500% in the decade since Mt. Gox’s collapse.
However, popular on-chain analyst RunnerXBT believes that only the weakest Bitcoin holders will be looking to sell their tokens, causing only short-term sell pressure.
The analyst stated in a July 16 X post:
“I expect CT [Crypto Twitter] (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 amounts of sell pressure can significantly impact Bitcoin’s price, which has recently recovered from an over-one-month downtrend.
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