Bitcoin Hits $65K Shaking Off Mt. Gox Payout Worries
$Bitcoin(BTC.CC$ BTC surged above the $65,000 level for the first time since late June, shrugging off a dip below $63,000 earlier in the day as wallets related to the defunct Mt. Gox exchange's estate moved $2.8 billion worth of BTC, likely preparing to distribute assets to creditors in the coming days.
Mt. Gox sell pressure "overestimated"
As Germany's BTC sales are behind, crypto investors mull how much of the $9 billion bitcoin about to be distributed to creditors will be dumped on the market to capitalize on the asset's appreciation after ten years of waiting.
Ki Young Ju, CEO of crypto analytics firm CryptoQuant, argued that fears over the sell pressure is "overestimated" and will not derail the crypto rally underway.
Ki Young Ju, CEO of crypto analytics firm CryptoQuant, argued that fears over the sell pressure is "overestimated" and will not derail the crypto rally underway.
"I believe this distribution won't end the bullish trend, as the coins are expected to react to market sentiment similarly to the existing bitcoin supply," he explained in an X post. "Unlike the German government selling, Mt. Gox creditors aren't forced to sell, so it's not purely sell-side liquidity."
Well-followed crypto and macro analyst Alex Krüger estimated a 10% price drop at maximum for bitcoin if creditors dump their reclaimed assets en masse, Ju pointed out.
The market should absorb Mt. Gox creditors liquidating their assets if they happen orderly and spread through weeks based on bitcoin's current market depth and trading volumes.
The distribution of ~65,000 BTC (worth approximately $1.95B at current prices) could potentially be absorbed by the market over a period of a couple weeks without causing severe disruptions, assuming the liquidations are done gradually and across multiple exchanges.
The market should absorb Mt. Gox creditors liquidating their assets if they happen orderly and spread through weeks based on bitcoin's current market depth and trading volumes.
The distribution of ~65,000 BTC (worth approximately $1.95B at current prices) could potentially be absorbed by the market over a period of a couple weeks without causing severe disruptions, assuming the liquidations are done gradually and across multiple exchanges.
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