Is Mt.Gox a worry for Bitcoin? Cryptocurrency analyst assessment
A Bitcoin outflow occurred at the Mt. Gox exchange last day, raising concerns about a potential downside effect. Here’s what the analyst thinks: Mt. Gox has made several Bitcoin transactions in the last 24 hours. Cryptocurrency exchange Mt. went bankrupt over the past day. Several movements of wallets associated with Gox have been discovered on the Bitcoin blockchain. The transaction is likely related to creditors, as the platform has announced plans to repay them. Mt. Gox leaked a total of 137,890 BTC, worth nearly $9.4 billion at current cryptocurrency exchange rates. These transfers made the market concerned about whether these tokens would move into trading, which added to the selling pressure in the market. Related Reading: Ethereum Deposits at 4-Month High: Ready for Whale Sell-Off? As a result, the price of BTC has fallen by about 4% in the last 24 hours. The market has so far reacted negatively to the news, but some have wondered if these withdrawals might actually be bearish. Analyst James Van Straten discussed this in his The distribution event in question comes from Long Term Holders (LTHs), who make up one of the two main segments of the BTC market based on holding time. All investors who have held coins for more than 155 days fall into this cohort, while those who purchased within the last 155 days belong to the Short Term Holders (STH) group. LTH is considered a decisive side of the market as it rarely engages in selling, while STH is a volatile investor that regularly reacts to sector events through panic selling. However, the recent rally in the asset has proven to be enough to make even these HODLers sell, as the chart below shows the overall supply. As you can see from the graph, LTH supply has been trending sideways over the past few months, but has also been declining for five months prior to that. In this sale, LTH sold approximately 1 million tokens, of which approximately 340,000 BTC were linked to the GBTC outflow. At the same time, even though these distributions from LTH have occurred, the price of the coin has hit new all-time highs, meaning the market is well positioned to absorb this massive selling pressure. Straten is Mt. They point out that the Gox redemption is only a tenth of this sale, and not everyone who gets these tokens will decide to sell. At least not everyone will sell at the same time. Related Reading: Injection (INJ) Buy Signal Forms Again 700% and 555% Rally So, taking these facts into account, it is unlikely that Bitcoin will be immune to this distribution if demand for the cryptocurrency remains as strong as it has been recently. there is. . BTC Price Bitcoin had previously surpassed the $70,000 level, but the Mt.Gox news caused the asset to fall to $67,700. Dall-E, featured image from Glassnode.com, chart from TradingView.com
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