Mt. Gox, the defunct crypto exchange, recently made a huge Bitcoin transfer, sparking fears of a sell-off that could tank the market.
But is there really cause for concern?
CryptoQuant CEO Ki Young Ju thinks not. He says the fear, uncertainty, and doubt (FUD) surrounding the Mt. Gox repayments are overblown.
Here’s why:
- Bitcoin’s market cap is growing faster than its realized cap, indicating strong demand.
- Even with $224 billion worth of Bitcoin sold since 2023, the price is still up over 350%.
- Mt. Gox’s $3 billion worth of Bitcoin is only 1% of the realized cap increase in this bull market.
While Ju believes the impact of Mt. Gox’s transaction is overestimated, he acknowledges that Bitcoin is still vulnerable to speculative FUD.
He points to the German government’s recent large-scale Bitcoin transfer as an example. While some panicked and sold, long-term holders actually bought more Bitcoin during the FUD, showing their confidence in the asset.
Only a Fraction of Mt. Gox Bitcoin Distributed
It’s important to note that only 36% of Mt. Gox’s Bitcoin holdings have been distributed to creditors so far. This recent transfer to Kraken is just the beginning of the distribution process.
Mt. Gox still holds 141,686 Bitcoin, which will be gradually distributed to creditors over time.
So, while it’s natural to be cautious, there’s no need to panic about the Mt. Gox repayments. The overall market is strong, and long-term holders are confident in Bitcoin’s future. /p>
