- According to Ki Young Ju, CEO of CryptoQuant, smart money can still purchase cheap Bitcoin since it is still susceptible to speculative false impressions.
According to Ki Young Ju, CEO of CryptoQuant, the effect of Mt. Gox’s repayments on Bitcoin is currently being overstated and will probably be used by whales to purchase more BTC at a discount.
Ju stated in a post on July 16 to X that the increase in the market capitalization of Bitcoin (BTC tickers down $65,845 over the last 18 months) outweighs the impact of Mt. Gox sales, which might be as little as $3 billion to $9 billion in BTC.
Ju stated that even if MtGox’s $3 billion is sold on Kraken, it would only represent 1% of the total capital gain in this bull market—manageable liquidity.
Ju also noted that the price of Bitcoin was more vulnerable to speculative FUD, or fear, uncertainty, and doubt, surrounding hypothetical negative events than it was to the fundamental selling activity that underpinned it.
Ju claimed that although a lot of investors were selling in a panic, the wise money was always purchasing additional Bitcoin.
Ju referred to a post from July 10 that included data demonstrating that 85,000 BTC had been amassed by permanent holders—large, individual custodial wallets with no outflows—during the previous thirty days.
In the last few weeks, the Mt. Gox trustee has transferred funds several times from cold to hot wallets.
Based on information from Arkham Intelligence, Mt. Gox is the owner of 138,985 Bitcoin, which is valued at around $8.93 billion.
The defunct Japanese cryptocurrency exchange Mt. Gox notified creditors on July 5 that it had started paying back almost 140,000 Bitcoin to users who had lost their money in a significant attack in 2014.
However, head of research at Galaxy Digital Alex Thorn estimated that just 65 000 of the 141,000 Bitcoins may be traded, significantly reducing the expected impact.
Analysts also told Cointelegraph that they thought the worst of the price action for bitcoin was probably behind us and that much of the possible sell pressure related to Mt. Gox sales had already “priced in.”
According to TradingView data, the price of Bitcoin has increased by 12% in the previous seven days after rising from two-month lows of $53,500 on July 4. At the moment, the cryptocurrency is trading for $65,154.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
