The infamous collapse of the Mt. Gox exchange occurred in 2014, and creditors have been waiting for reimbursement for over a decade.
Mt. Gox still has a whopping 90,000 Bitcoin, valued at roughly $6 billion, as investors and speculators weigh the effects the sell-off will have on the Bitcoin market.
Data from Arkham Intelligence indicates the last transaction made from Mt. Gox occurred on July 24, 2024, at 06:50:05 UTC and contained roughly 382 Bitcoin, valued at approximately $25 million, sent to Bitstamp.
Mt. Gox sell-off triggers fear, uncertainty, and doubt
News of the Mt. Gox sell-off has created fear, uncertainty, and doubt among market participants during the last several weeks, with the $8.2 billion question coming down to whether or not the Mt. Gox creditors, who have been waiting over 10 years for reimbursement, will sell their holdings.
According to a recent Reddit poll conducted in the Mt. Gox insolvency subreddit, 56% of the 467 creditors polled do not plan on selling their Bitcoin holdings, while 20%, or 88 individuals, plan to sell their holdings. The remaining respondents indicated they plan on selling a portion of their Bitcoin while choosing to hold the remainder.
The findings of the Reddit poll were further corroborated by data from CryptoQuant founder Ki Young Ju. The quantitative analyst explained that following the distribution of funds to Kraken users on July 23, 2024 “There has been no significant spike in hourly spot trading volume dominance or BTC outflows on Kraken.”
Onchain analyst RunnerXBT echoed a similar sentiment, explaining that only those traders with “paper hands” will sell their Bitcoin reimbursement funds and contribute to selling pressure, while those who understand the value of the scarce decentralized asset will continue to hold their funds.
However, financial analyst Jacob King disagrees with this analysis, arguing that up to 99% of the Mt. Gox creditors will sell their Bitcoin, driving Bitcoin’s price into bear market territory due to the massive selling pressure and low organic demand.
Bitcoin’s price action
Despite the billions in potential sell pressure coming from the Mt. Gox bankruptcy reimbursements, the price of Bitcoin has been fairly resilient.
Following a bevy of political developments, Bitcoin hit a recent high of around $68,000 and is currently trading at around $65,000 despite the ongoing Mt. Gox reimbursement.
Source: cointelegraph.com
