Here’s Why Net Bitcoin Flows to Exchanges Have Hit an Annual High: ITB

Since the beginning of the month, bitcoin (BTC) flows on crypto exchanges have been increasing. This is mainly due to the creditor distributions by the rehabilitation receiver of the defunct BTC trading platform Mt. enjoy

Data from blockchain analytics platform IntoTheBlock has revealed that net BTC flows from the exchange reached an annual high of $2.8 billion on July 25. Crypto trading platforms saw similar BTC inflows in mid-March, about two months after the US exchange-traded fund (ETF) market went live.

The deposits of Mt. Gox drive exchange flows

The trustee of Mt. Gox has transferred thousands of bitcoins to crypto exchanges Kraken and Bitstamp in the past two weeks. Kraken received $3.1 billion worth of the leading digital currency and has concluded distributions to users who serve as creditors of Mt. Gox and victims of the exchange’s multibillion-dollar hack in 2014.

Bitstamp has also received its share of refund funds and began distributions on July 25th. The exchange said payouts to users’ wallets would take up to a week amid security checks to prevent compromise. While the exact amount of assets received by Bitstamp is unclear, data from chain analysts suggests it may be more than $1 billion.

Apart from the transfers to Kraken and Bitstamp, the trustee of Mt. Gox has also been moving large amounts to unknown addresses, likely in preparation for distribution to other exchanges involved in its creditor rescue plan. CryptoPotato reported on July 24 that the address linked to the missing entity moved $2.47 billion BTC to an unknown wallet.

The users of Mt. Gox are HODLing

As creditor distributions progress, it appears that users who have received their funds are choosing to hold and not sell. CryptoQuant data revealed a significant increase in BTC withdrawals from Kraken after users of Mt. Gox to start receiving their BTC, indicating a move towards cold wallets and a sign of readiness to hold their assets.

CryptoQuant founder and CEO Ki Young Ju did not notice any substantial increase in spot trading volumes or BTC outflows just days after Kraken concluded payouts. Also, there has been no increase in volume on the exchange; arrivals and departures have remained normal since then. He insisted that the supply of Mt. Gox BTC on Kraken should be treated as part of the existing retail supply because it is now sensitive to market sentiment.

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