Mt. Gox and the U.S. Government Could Unleash $15 Billion in Bitcoin Selling Pressure
Bitcoin's rally could extend into September even as Mt. Gox and the U.S. government may add nearly $15 billion in selling pressure. Bitcoin's sluggish price recovery could continue into September as Mt. Gox and the U.S. government may introduce nearly $15 billion in additional selling pressure. More than $14.8 billion worth of Bitcoin BTC tickers down $58,965 could soon flood the market and add further downward pressure. The U.S. government currently holds over 203,000 Bitcoin valued at $12.1 billion, while the defunct crypto exchange
Bitcoin's rally could extend into September even as Mt. Gox and the U.S. government may add nearly $15 billion in selling pressure.
Bitcoin's sluggish price recovery could continue into September as Mt. Gox and the U.S. government may introduce nearly $15 billion in additional selling pressure.
More than $14.8 billion worth of Bitcoin BTC tickers down $58,965 could soon flood the market and add further downward pressure.
The U.S. government currently holds over 203,000 Bitcoin valued at $12.1 billion, while the defunct crypto exchange Mt. Gox is set to distribute an additional 46,000 Bitcoin worth over $2.7 billion.
Bitcoin selling pressure. Source: Kaiko
Mt. Gox is expected to distribute $2.7 billion worth of Bitcoin before the end of 2024 via Kraken, though the repayment may not significantly impact the market, according to a report from crypto analytics provider Kaiko on August 29:
"Kraken has handled BTC ETF flows with only a minor increase in slippage at the close of the U.S. trading session. Its liquidity profile suggests that any additional selling pressure from Mt. Gox repayments is unlikely to cause structural issues affecting the broader market."
Mt. Gox creditors have been waiting to receive over $9.4 billion worth of Bitcoin for the past 10 years, and the value of those holdings has surged more than 8,500%, meaning many investors may look to sell.
Related: TeraWulf launches new Bitcoin mining facility, targeting major tech partners
Mt. Gox creditors haven't sold during the massive $4 billion distribution
Despite Bitcoin's significant price appreciation, Mt. Gox creditors have yet to sell.
Mt. Gox creditors received nearly $4 billion in BTC at the end of July, representing 41.5% of the total amount owed to users.
However, most Mt. Gox creditors have chosen not to sell, according to a Glassnode report from July 29.
"Creditors opted to receive BTC rather than fiat, which is novel under Japanese bankruptcy law […] As a result, there's a reasonably high probability that only a portion of the distributed coins will actually be sold into the market."
BTC: Mt. Gox trustee flows. Source: Glassnode
Notably, the Cumulative Volume Delta (CVD) — an indicator that measures the net difference between buy and sell volume on centralized exchanges — showed no significant spike on Kraken following Mt. Gox's BTC distribution.
Bitcoin CVD, Kraken. Source: Glassnode
Related: Celsius distributes $2.5 billion to 251,000 creditors during bankruptcy proceedings
Bitcoin price remains stuck below $60,000
Meanwhile, Bitcoin continues to trade below the key psychological level of $60,000 after falling more than 10.7% on the monthly chart.
BTC/USD, 1-day chart. Source: TradingView
For Bitcoin to close August in the green, it would need to finish the month above $64,300.
Analysts warn that the low-liquidity conditions typical of summer could carry over into September, making it difficult for Bitcoin to break above the $63,900 resistance level, according to Bitfinex analysts who told Cointelegraph:
"Price is a reflection of historical market transactions; we need to look beneath the surface. Price has rallied up to the short-term holder realized price at around $63,900, and as a result we've also seen some profit-taking activity from the short-term holder cohort."
Analysts also noted that Bitcoin's average return in September has been negative at -4.78% since 2013.