Mt. Gox Creditors Hold Almost 42% of Distributed Bitcoin
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Creditors of the defunct crypto exchange Mt. Gox have reportedly chosen to hold their Bitcoin decades after the platform went bankrupt. According to reports, Mt. Gox has distributed over 40% of the BTC owed to its creditors.
Creditors Retain Bitcoin Holdings
According to Glassnode data, creditors of the now-defunct Mt. Gox exchange are choosing not to liquidate their holdings of roughly $4 billion worth of BTC. According to the report, a new precedent in Japanese bankruptcy law was set when most of these creditors opted to collect their settlements in BTC instead of fiat cash.
Given that many of the distributed coins might not hit the market right away, the creditors’ decision demonstrates their great conviction in the future of cryptocurrencies.
The Mt. Gox Collapse
Launched in 2010, Mt. Gox rapidly became a prominent Bitcoin exchange based in Japan, handling over 70% of all Bitcoin transactions. However, the exchange experienced a catastrophic hack in 2014, losing 850,000 BTC, worth billions of dollars.
This incident, regarded as one of the biggest hacks in Bitcoin history, caused the exchange to crash and required a protracted bankruptcy procedure. Since nearly 127,000 debtors were waiting to be paid, many industry observers worried that an influx of BTC into the crypto market could drive down prices.
The Kraken exchange finished distributing the seized Bitcoin to creditors on July 24. However, current market conditions indicate that these receivers will keep their funds. The spot cumulative volume delta (CVD) on centralized exchanges, such as Kraken, has not indicated a discernible rise in selling activity after the distribution, per Glassnode’s findings.
Investor Behavior and Market Dynamics
Considering the over 8,500% price increase that Bitcoin has recorded since the collapse of the exchange, the choice made by Mt. Gox creditors to retain rather than sell their holdings is notable.
Remarkably, more than 65.8% of the total BTC supply has not moved for more than a year, and more than 54% has been dormant for more than two years. This trend change could be a sign of increasing investor confidence in Bitcoin’s long-term worth.
Bitcoin Future Outlook
BTC’s recent performance has been characterized by volatility. Before falling to about $66,000, BTC crossed the $70,000 threshold for a brief period on July 29. Bitfinex analysts pointed out that there is a strong downward pressure on implied volatility in the options market, which could lead to further price retreats.
BTC has encountered significant resistance in the $68,000–$69,000 zone, notwithstanding its volatility. The token had difficulty keeping up its momentum after momentarily reaching a new seven-week high.
Significant market activity is also indicated by the recent expiration of 61,000 BTC options contracts, which had a notional value of $3.1 billion and a Put Call Ratio of 0.62. Hence, observers noted that it could take a while for BTC to overcome the $68,000–$69,000 resistance zone.
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