NAIROBI (CoinChapter.com) – Earlier this month, the Mt. Gox Trustee began the long-awaited process of repaying creditors affected by the exchange’s collapse over a decade ago. As of July 31, the Trustee announced that 17,000 creditors had received repayments in Bitcoin and Bitcoin Cash. So far, about 59,000 BTC out of the recovered 142,000 BTC has been distributed to creditors via Kraken and Bitstamp exchanges.
Additionally, Arkham Intelligence reported that Mt. Gox wallets moved $3.1 billion worth of Bitcoin on July 31, including 33,960 BTC valued at $2.25 billion to addresses likely associated with BitGo.
Creditors Choose to Hold: A Surprising Twist
According to Glassnode, Mt. Gox creditors are showing remarkable restraint and are not quickly selling the nearly $4 billion worth of Bitcoin they have received.
In past Mt. Gox transfers, the market often experienced price drops. However, after the latest transfer, Bitcoin’s price briefly dipped 0.4% from $66,000 during the Asian trading session before rebounding to about $66,500.
This market behavior contrasts with the German Government’s sale of over 48,000 BTC in late June, which the market absorbed while rallying from $53,000 to over $68,000. Throughout the Mt. Gox distribution, Bitcoin has traded between $66,000 and $68,000, reflecting strong demand and resilience.
The market shows resilience, with Bitcoin prices remaining relatively stable. This stability indicates lighter-than-expected sell-side pressure. The Spot Cumulative Volume Delta (CVD) metric on Kraken and Bitstamp shows only a marginal uptick in sell-side pressure. Many creditors appear to be holding onto their BTC.
HODLing Dominance Among Long-Term Holders
Long-term holders (LTHs) show a strong tendency to hold onto Bitcoin, currently holding 45% of the network wealth. This underscores a return to HODLing dominance, as mature investors await higher prices before selling. The Long-Term Holder Binary Spending Indicator shows light distribution pressure, supporting this trend.
Additionally, according to crypto analyst Ali, long-term Bitcoin holders have added over 110,000 BTC to their portfolios, highlighting their confidence in Bitcoin’s future price appreciation. This buying spree indicates a robust market sentiment among seasoned investors, who are capitalizing on current market conditions to strengthen their holdings.
Why is Bitcoin Crashing?
Bitcoin’s (BTC) price fell to $63,005.32 on Aug. 2, a 5.16% drop from $64,633.11 the previous day. This decline reflects a broader bearish trend in the cryptocurrency market following economic data released on July 31, which suggested a slowdown in consumer spending.
The Federal Open Market Committee’s (FOMC) decision to maintain the U.S. interest rate at 5.50% also impacted Bitcoin’s value. Federal Reserve Chairman Jerome Powell noted that while inflation has eased, it remains high.
According to Santiment, the FOMC’s choice to keep interest rates steady led to an initial drop in crypto prices, as traders had anticipated a rate cut for the first time since March 2020. Although the market is expected to stabilize once the initial sell-offs subside, a rebound could occur if aggressive whale accumulation and increased crowd negativity emerge.
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