Bitcoin defies gravity and has an amazing ability to withstand a wave of selling pressure from the Mt. Gox distribution.
At the time of writing, Bitcoin has not only managed to hold above $60,000 but has also managed to hold above $62,500, a level that is particularly interesting to traders. As of now, Bitcoin is still in an uptrend, with bullish traders eyeing $66,000 and $72,000 in the coming sessions.
Daily Bitcoin Flow Very Low as Retail Activity Continues to Suppress
While Mt. Gox creditors are distributing coins to victims of the 2014 hack via exchanges like Kraken, one analyst picks out another development.
From the data on the chain, It seems Daily Bitcoin exchange flows reach unusually low levels, averaging around 30,000 Bitcoin. Interestingly, this comes amid reports Displays Mt. Gox has successfully compensated approximately 65% of victims.
The low daily flow of Bitcoin means that even if Mt. Gox does transfer coins to victims, it will likely have no impact on the markets. As a result, Bitcoin will continue to rise, possibly breaking through the immediate liquidation lines.
Meanwhile, there is other data. Displays Retail activity is down, not as much as expected now that fears of Mt. Gox crashing the market are high. This means that retailers risk missing out on buying into Mt. Gox victims.
Alternatively, large institutions, including issuers of Bitcoin ETFs, may take advantage of this situation and acquire coins from willing sellers.
The crypto market has matured, and Bitcoin distribution will be absorbed by Mt. Gox
However, others attribute the decline in retail activity to the resilience of Mt. Gox victims and their unwillingness to sell. These bitcoin holders were among the early adopters of bitcoin and other crypto assets.
Therefore, the motivation behind this is likely to be the value proposition of the currency and what it means to hold Bitcoin. Most of these entities prefer to hold cryptocurrencies. Don’t look For sale Immediatelyto support buyers.
Aside from this preview, Ki Young Joo is convinced The impact of the Mt. Gox distribution is exaggerated. In a post on X, the CEO of CryptoQuant said that the market cap of Bitcoin has increased Growing fastexceeding the maximum achieved over the years.
This development indicates a surge in demand. To illustrate this fact, prices have risen 3.5 times since 2023, despite selling more than $224 billion worth of Bitcoin. The CEO noted that markets are maturing and can absorb massive selling pressures adequately, regardless of the source.
Featured image from Canva, chart from TradingView
