Mt. Gox, the defunct crypto exchange, has been moving around a lot of Bitcoin lately, and people are worried about the potential impact on the market. But Cryptoquant founder Ki Young Ju says we shouldn’t panic. Here’s why:
Why Mt. Gox’s Bitcoin Move Might Not Affect the Price
Ki Young Ju thinks Mt. Gox’s Bitcoin transactions probably won’t affect the price for a few reasons:
- Internal Transfer: The Bitcoin could just be moving between wallets within Mt. Gox for security reasons.
- Over-the-Counter (OTC) Deal: Mt. Gox might be selling the Bitcoin through private deals, which wouldn’t affect the market price. This makes sense since they have a huge amount of Bitcoin and want to sell it without causing a crash.
- Brokerage Service:
Mt. Gox could be using a brokerage service to sell the Bitcoin. This means the Bitcoin wouldn’t go through exchanges, so it wouldn’t affect the market.
Plus, Ki Young Ju points out that 1,500 Bitcoin was sent to Bitbank, but there wasn’t a huge spike in trading volume. This suggests that Mt. Gox’s sales aren’t really impacting the market.
However, he does acknowledge that 94,000 Bitcoin could be available for sale if they use a brokerage service. But he thinks this is unlikely because it would be hard to sell that much Bitcoin without it showing up on the blockchain.
Another Entity to Watch: The German Government
While Mt. Gox’s Bitcoin moves might not be a big deal, the German government is another story. They’ve been selling off their Bitcoin holdings for a while now, and they don’t seem to be slowing down.
Just recently, the German government sent over 13,000 Bitcoin to various exchanges, including Coinbase, Kraken, and Bitstamp. They still have over 27,000 Bitcoin left, so this is something to keep an eye on.
Right now, Bitcoin is trading around $57,500, up over 3% in the last 24 hours. /p>
