Mt. Gox Bitcoin Transfer: CryptoQuant Analyzes Potential Market Effects Of The $9.4B Movement
May 29 2024 - 9:30PM
NEWSBTC
Mt. Gox, the defunct Bitcoin (BTC) exchange that suffered a major
collapse in 2014 has recently initiated payout distribution to
creditors waiting for it. The release of a substantial amount
of BTC, equivalent to $9.4 billion, on May 27th has raised concerns
about potential market liquidity and price stability. In response,
the on-chain market intelligence platform CryptoQuant has provided
an analysis of the potential impacts of this development.
Potential Market Effects According to the firm’s analysis, 138,000
Bitcoin moved significantly from Mt. Gox in seven transactions,
each worth 4,000 to 32,000 Bitcoin. Initially, these funds
were transferred to a single address and distributed to three
separate addresses, each holding 47,400 Bitcoin. It is
important to note that these addresses remain under the control of
Mt. Gox’s Rehabilitation Trustee, and no repayments to creditors
have been made as of yet. The consolidation of these funds suggests
that the Trustee is actively preparing for future repayments by the
Rehabilitation Plan. Related Reading: ‘Solana Is For Baddies’:
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At present, transfers within the Trustee-controlled addresses have
not impacted the market immediately. However, the firm notes that
eventual repayment to creditors, targeted for completion by October
31, 2024, could influence Bitcoin’s market dynamics. For
CryptoQuant, the market impact will depend on various factors,
including the timing, size, and manner of the repayments. If and
when the Trustee begins repaying creditors, it could introduce a
substantial amount of Bitcoin into the market, influencing
liquidity and price stability. The firm concluded by stating: There
is no immediate selling pressure for Bitcoin from these movements
as the transfers have occurred within the addresses of the same
entity (Mt. Gox Rehabilitation Trustee) and are not still available
to the open market. Bitcoin Price Gravitates Towards ‘Level 3’ At
$91,000 As concerns grow over the potential downside impact on
Bitcoin’s price due to Mt. Gox’s repayment plan, analyst Crypto Con
offers insights into the current state of Bitcoin price
bands. Bitcoin price bands refer to specific price ranges
that analysts closely monitor to gauge potential market movements.
These bands act as magnets, attracting the price to specific
levels. In particular, as seen in the chart above, “Level 3” at
$91,539 has emerged as a significant price target. Despite the
ongoing consolidation at Level 2.5, the analyst believes the market
is showing signs of gravitating towards Level 3.
Additionally, Crypto Con notes that historical data suggests that
the cycle top band, priced at $123,000, will likely be reached with
precision during the final “Bitcoin parabola.” Related Reading:
Solana Remains Institutional Investors’ Favorite, YTD Flows Ramp Up
To $29 Milion At the time of writing, the largest cryptocurrency in
the market was trading at $67,400, slowly losing ground after
continued failed attempts to consolidate above the ley $70,000
level, which is seen as the last hurdle before a potential retest
of its current all-time high of $73,700 reached on March 14.
Featured image from Shutterstock, chart from TradingView.com
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