The ongoing distribution of Bitcoin to creditors of the defunct Mt. Gox exchange has reached a significant milestone, with over one-third of the owed funds disbursed. However, despite concerns over potential selling pressure from these newly unlocked coins, large Bitcoin holders, commonly known as whales, have continued their accumulation spree.
According to data from CryptoQuant, 36% of the Bitcoin owed to Mt. Gox creditors has already been distributed, amounting to approximately 51,000 BTC. The trustee overseeing the distribution process currently holds 141,686 BTC, which will be gradually disbursed over time.
The imminent release of billions of dollars worth of Bitcoin to former Mt. Gox customers has been a major concern for market participants. With over $9.4 billion in Bitcoin owed to approximately 127,000 creditors, fears of a significant sell-off that could depress Bitcoin prices have been prevalent.
Despite the looming threat of increased Bitcoin supply, large investors have continued their accumulation of the cryptocurrency. A notable transaction on July 17th saw a whale purchase 245 BTC, worth approximately $16 million. This particular whale has a history of profitable trades, having previously generated over $30 million in profits from Bitcoin purchases and sales over the past year.
Whale accumulation is often seen as a bullish indicator, suggesting that large investors believe Bitcoin’s price is undervalued and poised for a future uptrend.
While whale accumulation offers a counterbalance to the potential selling pressure from Mt. Gox creditors, concerns remain about the impact of these repayments on the Bitcoin market. Finance analyst Jacob King has suggested that up to 99% of Mt. Gox creditors could be inclined to sell their newly acquired Bitcoin. However, on-chain analyst RunnerXBT argues that only “weak hands” – those with a low tolerance for price volatility – are likely to sell their Bitcoin immediately.
The potential influx of Bitcoin from Mt. Gox creditors could temporarily increase selling pressure and lead to price declines. However, the sustained accumulation by whales and the overall strength of the Bitcoin market suggest that any downward price movement may be short-lived.
The Bitcoin market is currently grappling with conflicting forces. On one hand, the imminent release of a significant amount of Bitcoin from Mt. Gox could exert downward pressure on prices. On the other hand, the continued accumulation by whales and the overall strength of the market suggest a potential for resilience. The coming weeks will be crucial in determining the net impact of these factors on Bitcoin’s price trajectory.
