Mt. Gox, cryptocurrency exchange platform goes bankrupt Recent Bitcoin transfers have continued to raise concerns within the crypto community, given the selling pressure they could put on the flagship cryptocurrency. However, Cryptoquant Founder Ki Young Juhelped ease those concerns, recently explaining why the deals might not affect the market.
Why Mt Gox’s 47,000 BTC Move Won’t Affect Bitcoin Price
In an X (formerly Twitter) jobKi Young Ju outlined three possible scenarios for Mt Gox’s Bitcoin transactions to explain why it won’t affect its price. First, he said that these Bitcoin Transactions It may have simply been an internal transfer, with the defunct crypto exchange switching wallets for security reasons.
Second, he mentioned that the transaction could have been an over-the-counter (OTC) transaction, as these transactions are designed not to affect the market price. Given the magnitude of Mt Gox’s Bitcoin holdings, this also seems feasible since the cryptocurrency exchange will be looking to facilitate reimbursements without their actions having serious repercussions on the market.
For the third scenario, Ki Young Ju mentioned that Mt. Gox could have used a brokerage service after the sale was completed since those bitcoins did not go through the brokers’ wallets or exchanges. Founder of Cryptoquant He also hinted that 1,500 BTC was sent to Bitbank, but there has still been no significant increase in trading volume, suggesting that Mt. Gox’s sales are unlikely to affect the market.
However, he admitted that 1,500 BTC is a relatively small amount, which may explain the lack of a noticeable increase in trading volume. Ki Young Ju noted that 94,000 BTC are available for sell-side liquidity if scenario 3 applies. However, he seemed confident that this would likely not be the case, as he mentioned that it is impossible to sell that much BTC without on-chain movement. Meanwhile, he added that a OTC Trading This means that the market is safe.
Another entity that continues to concern us
Although Ki Young Ju’s analysis suggests that Mt. Gox’s transactions are unlikely to affect the market, German Government is another entity that should worry us. They have been dumping their Bitcoin holdings since last month, and recent on-chain data suggests that they are not slowing down anytime soon.
On-chain analytics platform Arkham Intelligence revealed that the German Government On July 8, the German government sent over 13,000 BTC to various cryptocurrency exchanges and creators, including Coinbase, Kraken, and Bitstamp. Despite these transfers, the German government has yet to holds over 27,000 BTC ($1.57 billion). This is something to keep an eye on, especially if they still plan on getting rid of a significant amount of their remaining assets.
At the time of writing, Bitcoin is trading at around $57,500, up more than 3% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com
