More than a third of the Bitcoin owed to creditors of the defunct Mt. Gox exchange has been distributed, while large Bitcoin holders, known as whales, continue to accumulate the cryptocurrency. CryptoQuant announced on July 17 that 36% of the Bitcoin owed to Mt. Gox creditors has been distributed. The trustee still holds 141,686 BTC, which will be allocated to former users over time. This initial distribution has raised concerns among investors about potential selling pressure and its impact on Bitcoin’s price.
Mt. Gox owes over $9.4 billion worth of Bitcoin to approximately 127,000 creditors who have waited over a decade to recover their funds. This significant repayment has sparked fears of a price drop due to the influx of Bitcoin onto the market.
Despite these concerns, Bitcoin whales remain undeterred. On July 17, a notable whale purchased 245 BTC, worth nearly $16 million. This address has engaged in only two trades this year, netting over $30 million in profit, according to Lookonchain. Between August and December 2023, the whale bought 718 BTC at an average price of $29,385 and sold at $41,953, earning $9 million. In another trade from February to June 2024, they acquired 1,181 BTC at $48,822 and sold at $66,792, making $21.2 million.
Investors often look to whale buying patterns to assess market health and identify long-term investment opportunities. The potential sell-off from Mt. Gox repayments is a significant event, but whale activity suggests confidence in Bitcoin’s future.
Finance analyst Jacob King predicts that up to 99% of Mt. Gox creditors might sell their Bitcoin due to its massive value increase since the exchange’s collapse. However, popular on-chain analyst RunnerXBT believes only the weakest holders will sell, causing short-term sell pressure. He expects the initial transfers to exchanges to trigger panic among less resilient traders. The market’s response to these repayments and whale activities will be crucial in determining Bitcoin’s price trajectory as it recovers from a recent downtrend.