How will Mt.Gox's $9.4 billion worth of BTC affect the market?

source:cryptoslate

Compile:Blockchainknight

Mt. Gox’s dormant period may not be over yet, butwalletA series of tokens that have flowed out of the market have attracted the attention of the market.

It is speculated that137,890 BTC worth $9.4 billion will be transferred to creditorswalletmiddle, experts have had mixed reactions, with most of them worrying that BTC’s selling pressure may increase, leading to a drop in BTC prices.

Mt.Gox was once the world's leading BTC exchange,But it was hacked in 2014 and lost more than 850,000 BTC.

After years of legal battles, Japanese authorities finally approved a rehabilitation plan in 2021, launching a legal process known as "civil rehabilitation" that allows creditors to recover some of their lost funds.

The plan has come into effect.Creditors who lost funds can now receive a share of the remaining funds.

Mt.Gox plans to repay its creditors, which may have contributed to the 4% drop in BTC price in the past 24 hours, but the market was eventually able to shake off this impact and rebound.

However, there are also concerns that these newly released BTC will flood the market, leading to a sell-off and driving prices further down.

Mt.Gox 前首席执行官 Mark Karpeles 在一份官方声明中证实，虽然 BTC 抛售现在没有发生，但将通证从 Mt.Gox 转移到一个新wallet是向债权人分配的更大计划的一部分。

Based on the holding period of investors, the BTC market can be roughly divided into two categories: long-term holders (LTHs) and short-term holders (STHs).

• Long-term investors: These investors have held BTC for more than 155 days;

• Long-term holders: They are generally considered to be more decisive during market downturns and less likely to panic sell;

• Short-term holders: These investors have bought BTC in the past 155 days. Often more responsive to market news and events, and may be quicker to sell in response to negative sentiment.

CryptoSlate senior analyst James Van Straten shared a perspective revealing how long-term holders of Grayscale BTC Trust sold approximately 1 million BTC in the past five months.

The market has shown impeccable resilience in digesting these sales. In contrast, Mt. Gox has repaid creditors only 1/10 of the 1 million BTC sold.

The recent rally in BTC, which reached this year’s all-time highs ahead of the halving, was enough to incentivize some long-term holders to sell, as evidenced by their reduction in total supply.

Van Straten believes thatRecent LTH sell-off will dwarf the amount of BTC released by Mt. Gox through repayments.

According to on-chain data, data released earlier this year by research firm Glassnode showed that the number of BTC addresses holding BTC for more than 5 years hit a new low, indicating that some long-term investors are taking profits.

The massive movement of BTC has raised concerns that Mt. Gox’s creditors may decide to take over theexchangeSelling their recovered BXiaobai NavigationTC, thereby flooding the market and driving down prices.

BTC daily inflowexchangeThe volume has been hovering around 2016 levels, suggesting that liquidity to absorb the heavy selling may be low, amplifying the concern.

However, compared to this larger LTH sell-off, not all creditors who received BTC will immediately sell the recovered BTC.This allocation has not yet officially taken effect..

Among the creditors, some may choose to hold or buy more depending on their investment strategies.

While the immediate market reaction may be negative due to short-term investor panic, the resolution of the Mt. Gox incident may increase investor confidence in the overall health of the BTC ecosystem.

The Mt. Gox incident and its potential impact on BTC prices highlighted some vulnerabilities that are best addressed at this critical time in the market’s maturation..

While short-term volatility is to be expected, especially when large amounts of BTC are being transferred, market stability and increased liquidity will boost investor confidence and lay the foundation for BTC’s long-term performance.SafetyThe tone.

The article comes from the Internet:How will Mt.Gox's $9.4 billion worth of BTC affect the market?

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