After more than a decade of suspense, creditors of the defunct Mt. Gox Bitcoin (BTC) exchange have finally started receiving payments. long-awaited payments this month. Data from research firm Glassnode shows that as of Tuesday, 59,000 of Mt. Gox’s 142,000 BTC had already been distributed to creditors via exchanges Kraken and Bitstamp, with another 79,600 BTC to follow soon.
Muted selling pressure expected?
According to a recent report According to Glassnode, the total volume of recovered coins amounts to over 141,686 BTC, with nearly 59,000 BTC already reaching creditors and the remaining amount awaiting distribution.
Kraken and Bitstamp were entrusted as one of five designated exchanges responsible for the management and disbursement of these funds. Kraken received 49,000 BTC and Bitstamp the initial tranche of 10,000 BTC.
Notably, the firm noted that the size of these distributions already surpasses recent significant transactions in the cryptocurrency space, including crypto ETF inflows, issuances to miners, and the huge selling pressure experienced by the German government between June and July.
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However, the creditors opted to receive BTC instead of fiat currency, which was a new option under Japanese bankruptcy law, suggesting that many of the creditors remain active in the Bitcoin space despite the extensive legal process.
This active participation may indicate that only a subset of the distributed coins will enter the market for sale, according to Glassnode’s analysis, which could indicate a long-term participation strategy among creditors. This ultimately supports the price of BTC, rather than having an impact that could result in further price drops for the largest cryptocurrency on the market.
Furthermore, an analysis of the cumulative spot volume delta (CVD) metric on Kraken and Bitstamp shows only a marginal increase in sell-side pressure, suggesting that lenders may be more inclined to hold onto their BTC for the long term.
Long-term Bitcoin holders accumulate
Also supporting the price of Bitcoin over the past month, which has rallied nearly 25% after hitting a 6-month low of $53,500 on July 5. Long-term holders of the market’s largest cryptocurrency have been on a buying spree, according to market expert Ali Martinez, who recently revealed that these investors have added over 110,000 BTC to their portfolios.
Similarly, the Bitcoin ETF market has had its share of the recent recovery seen in BTC’s price over the past month, with the latest data showing new inflows into the regulated market in the US.
According to SoSo value dataBitcoin ETFs in the U.S. saw a total of $124 million in new inflows on Monday, although Grayscale’s GBTC ETF saw outflows of around $54 million. BlackRock’s IBIT ETF saw the most inflows on the day, with $206 million.
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All this contributed to BTC price consolidation Between $65,000 and $68,000 in recent days, with the aim of a possible retest of the all-time high of $73,500 reached in March this year.
Currently, the largest cryptocurrency on the market is trading at US$66,000, down 2.5% in the last 24 hours and 1.5% in the last week.
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