Expert Questions Impact of Mt.Gox Bitcoin Sales on Market

Concerns about potential sales of bitcoins distributed by the bankrupt exchange Mt.Gox are exaggerated, according to CryptoQuant’s founder and CEO, Ki Young Ju.

MtGox FUD is overestimated.

Market cap growth outpaces realized cap growth, showing strong demand. Since 2023, $224B in #Bitcoin sold, yet price up 350%.

Even if MtGox’s $3B is sold on Kraken, it’s just 1% of the realized cap increase in this bull cycle — manageable liquidity. https://t.co/IUtw2pY6Am pic.twitter.com/pWqWhM0i9Z

— Ki Young Ju (@ki_young_ju) July 16, 2024

The expert noted that since 2023, during the current bull market phase, $224 billion worth of digital gold has been sold, yet its price has risen by 350%.

“Even if Mt.Gox’s $3 billion assets are sold on Kraken, it’s just 1% of the bitcoin capitalization growth in this bull cycle — manageable liquidity,” said the head of CryptoQuant.

According to him, the leading cryptocurrency remains vulnerable to speculative FUD sentiments, as demonstrated by the German authorities’ liquidation of 50,000 BTC since June 19.

#Bitcoin is still vulnerable to speculative FUDs. That’s the only weakness of Bitcoin.

While you were panic selling during the German govt FUD, “the others” were buying.

Now, who’s the smart money?https://t.co/kq2xdO08Is

— Ki Young Ju (@ki_young_ju) July 16, 2024

Amid “panic sales,” major holders of digital gold accumulated an additional 85,000 BTC over 30 days, Ju noted.

On July 16, bitcoin reacted with increased volatility to the movement of more than 95,500 BTC (worth ~$6 billion) from Mt.Gox’s cold wallets. One of the recipients of the assets was the exchange Kraken.

However, in the last 24 hours, digital gold prices have risen by nearly 3%, with a weekly increase of 11.5% (CoinGecko). The cryptocurrency is trading above $65,000.

Earlier, analysts at K33 Research suggested that the prospect of selling 142,000 BTC from Mt.Gox could “frighten the market.” JPMorgan also speculated on the potential pressure from the sale of distributed assets on the cryptocurrency’s rate.

According to Sam Callahan of Swan Bitcoin, the impact of Mt.Gox on prices may be less than the market expects.

Back in the day, former owner and head of the bankrupt exchange Mark Karpeles expressed doubt about a mass sale of distributed funds by the platform’s clients.