Bitcoin defies gravity and is surprisingly resilient in the face of a wave of selling pressure from Mt. Gox distribution.
At the time of writing, BTC is not only firmly anchored above $60,000 but has also managed to hold above $62,500, a level that is of particular interest to traders. So far, Bitcoin remains in an uptrend, and bullish traders are eyeing $66,000 and $72,000 in the coming sessions.
Daily Bitcoin Flow Very Low as Retail Activity Remains Reduced
As Mt. Gox creditors distribute coins to victims of the 2014 hack through exchanges like Kraken, one analyst notes another development.
From the string data, it appears that the daily BTC exchange inflow is at unusually low levels, averaging around 30,000 BTC. Interestingly, this comes as reports to show that Mt. Gox successfully reimbursed about 65% of victims.
The low daily BTC inflow means that even if Mt. Gox moves coins to victims, it is very likely that their impact on the markets will not diminish. Subsequently, Bitcoin would continue to climb, potentially breaking through immediate liquidation lines.
At the same time, other data to show Retail activity is weak, as one might expect now that there are fears that Mt. Gox will destroy the market. That means retailers may miss out on the opportunity to buy Mt. Gox victims.
Instead, large institutions, including issuers of spot Bitcoin ETFs, could take advantage and scoop up coins from willing sellers.
Cryptocurrency Market Has Reached Maturity, Mt. Gox BTC Distribution Will Be Absorbed
However, others attribute the weak retail activity to the resilience of Mount Gox victims and their reluctance to sell. These BTC holders were among the early adopters of BTC and other crypto assets.
As a result, they are more likely to be motivated by the value proposition of the coin and what it means to hold BTC. Most of these entities would prefer to HODL and do not watch sell immediatelysupporting buyers.
Beyond this overview, Ki Young Ju is convinced The impact of Mt. Gox’s distribution is exaggerated. In an article on X, CryptoQuant’s CEO said that Bitcoin’s market cap has been grow fastexceeding the ceiling achieved over the years.
This development indicates strong demand. To illustrate this fact, prices have increased by 3.5 times compared to 2023, despite selling over $224 billion worth of BTC. The CEO observed that markets are maturing and can sufficiently absorb huge selling pressure, regardless of the source.
Main image from Canva, chart from TradingView
