Abdulkarim Abdulwahab
As the defunct exchange Mt. Gox commenced reimbursing users with Bitcoin, market data indicates that recipients opt to hold onto the cryptocurrency rather than sell it.
CryptoQuant, a prominent analytics platform, called attention to this notable trend in an update released today.
Mt. Gox Bitcoin Recipients Not Selling BTC
Specifically, Onchain School, a researcher and on-chain analyst at CryptoQuant, pointed out a significant surge in Bitcoin withdrawals from the Kraken exchange, coinciding with the reimbursement of affected Mt. Gox users.
The analyst interpreted this development as a positive signal, suggesting that users are opting to hold onto their coins rather than liquidate them. Instead, they are transferring their Bitcoin from the exchange to cold wallets, indicating a long-term investment strategy.
Although the volume is not exceptionally high, a substantial 5,000 BTC worth approximately $329 million has been withdrawn in the past 24 hours.
Mt.Gox Refunds: Users Choose to Hodl Over Selling
“Significant increase in BTC withdrawals from Kraken after affected Mt.Gox users start receiving their $BTC. This could be a positive signal, indicating that they are not selling and are preparing to hold their coins, moving them… pic.twitter.com/3Rys4sWfI2
— CryptoQuant.com (@cryptoquant_com) July 24, 2024
$6B Bitcoin Remains for Distribution
Significantly, Mt. Gox repositioned a staggering $2.47 billion worth of Bitcoin to two wallets earlier today. The move paved the way for the distribution of 5,106 BTC worth approximately $335.8 million to four separate Bitstamp exchange addresses.
It is worth noting that both Kraken and Bitstamp are among the five exchanges partnering with Mt. Gox Trustee to facilitate the repayment. In a report on Tuesday, Kraken CEO Dave Ripley confirmed distributing Mt. Gox’s Bitcoin inflow to the appropriate beneficiaries.
According to the latest records, Mt. Gox’s current Bitcoin holdings stand at 90,344 BTC, valued at over $6.01 billion. This marks a substantial decrease from the wallet’s previous balance of 140,000 BTC, valued at $9 billion in June.
Initially, the crypto community feared that Mt. Gox’s $9 billion Bitcoin would immediately hit that market and trigger a bearish market, reminiscent of the German government’s $3 billion sale. However, the recently observed trend of outflows from the Kraken exchange suggests otherwise.
Yet Bitcoin and the broader market are in a corrective phase, cooling off from the mini frenzy of the past week. The market correction coincides with Mt. Gox’s BTC distribution. At press time, Bitcoin trades above $66,400, with barely a 1% price gain in the last 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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