BTC has been holding the Mt Gox pressure well, so far. Will the latest $2.47 billion move impact BTC prices?
- Mt. Gox moved another $2.47 billion BTC to Bitstamp for repayments. QCP Capital analysts projected a likely subdued price to continue until November.
Mt. Gox moved another $2.47 billion worth of Bitcoin [BTC] during the early Asian trading session on Wednesday, the 24th of July. According to Arkham Intelligence data, the funds were moved to Bitstamp addresses to aid in the ongoing repayment process.
‘Mt. Gox moved a total of $2.47B BTC to new wallets this morning to distribute 5106 BTC ($335.8M) BTC to 4 separate Bitstamp addresses.’
Arkham added that the exchange had sent 10,216 BTC ($675.9 million) to Bitstamp and was among the five exchanges the Mt. Gox Trustee was working with to repay funds to victims.
Mt. Gox left with $5.3 billion in BTC
Last week, Kraken received $3 billion of BTC (48,641 BTC) from Mt. Gox for creditor repayments. The Kraken payout was finalized on Tuesday and confirmed by the exchange and some recipients.
The recent $2.47 billion sent to BitStamp brings Mt. Gox’s holdings to $5.3 billion, per Arkham. Some market observers believe the remaining BTC amount could be cleared by next week, giving BTC the needed relief.
However, the US government was another BTC supply pressure that could delay the relief.
Meanwhile, the early week of Mt Gox repayments through Kraken might not put downward pressure on the BTC price.
Recent data showed significant exchange outflows from Kraken after the payout, which suggested that some of the victims withdrew their holdings to cold wallets.
Source: Glassnode
This suggested that the repayment might have limited downward sell pressure on BTC in the short term.
Interestingly, Mt Gox distributed about 49k BTC in mid-July, but the cryptocurrency’s price didn’t drop below $60k. This has led some market observers to believe that the remaining repayment could be absorbed without massive drawdowns.
Nevertheless, according to QCP Capital analysts, the options market painted repayments with a cautious outlook and an expected downward move. The analysts predicted a subdued price for BTC until momentum builds up.
‘With the ETH Spot ETF potentially not impacting prices on the outset, coupled with potential selling pressure from the US Government and Mt Gox, prices may remain subdued until momentum builds up leading to the elections.’
As of press time, BTC defended the $66k level despite slightly dropping to the $65k region on Tuesday. If QCP Capital analysts’ projection plays out, BTC retest of the range-high at $71K could be delayed.
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