Why is the impact of Mt. overestimated? Gox on the BTC markets

On July 17, the founder and CEO of on-chain analytics firm CryptoQuant told his 355,000 X followers that the Mt. Gox FUD is overrated.

He referenced a growth rate chart that claimed that Bitcoin’s market capitalization growth is outpacing realized capitalization growth, “showing strong demand.”

Since last year, $224 billion in Bitcoin has been sold, but prices have increased by 350%, he added.

MtGox FUD is overrated.

Market capitalization growth outpaces realized capitalization growth, showing strong demand. From 2023, $224 million #Bitcoin sold, but the price has increased by 350%.

Even if the $3 million MtGox is sold to Kraken, it’s only 1% of the cap increase made in this bull cycle – manageable liquidity. https://t.co/IUtw2pY6Am pic.twitter.com/pWqWhM0i9Z

— Ki Young Ju (@ki_young_ju) July 16, 2024

The impact of Mt. enjoy

Ki Young Ju added that even if the $3 billion worth of Mt. Gox is sold on Kraken, it is only 1% of the cap increase made in this bull cycle, which is “manageable liquidity”. Realized capitalization is a variation of market capitalization that values ​​each transaction based on the price when it last moved, as opposed to its current value.

More than a third of the Bitcoin owed to the defunct exchange’s creditors has already been distributed, according to CryptoQuant, which reported a distribution figure of 36% on July 17.

“The trustee has 141,686 BTC, which will be distributed over time,” he added.

On July 16, Mt. Gox moved 48,641 BTC worth about $3 billion from its cold wallet address to a wallet on the Kraken exchange, according to analytics platform Arkham.

At that time, Kraken stated that it had successfully received creditor funds (BTC and BCH) from the trustee of Mt. enjoy “While we will work to distribute the funds as soon as possible, please allow 7-14 days for the funds to be credited to your account,” he added.

According to Arkham Intelligence, the wallet linked to Mt. Gox still holds 90,344 BTC worth about $5.87 billion at current prices.

BTC recipients

In related news, several Reddit users have reported brute force attacks on their Mt. Gox or hackers trying to infiltrate their Kraken accounts. With large amounts of BTC flowing into the accounts of Mt. Gox, have become prime targets for fraudsters and hackers.

Apart from the drop to $62,500 earlier this week, BTC prices have been holding steady and have been consolidating around the $65,000 level for the past two days.

As they did after the German government sell-off, markets are likely to absorb the impact. However, BTC needs to break through the $66,000 resistance for the trend reversal to be confirmed and further gains to be made.

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