The price of bitcoin drops below $68,000 after a $9.6 billion transfer from the Mt. Gox cold wallet

  • Bitcoin’s value dropped below $68,000 after a significant transfer from a cold wallet at Mt. Gox.
  • Analysts predicted that Tuesday’s unexpected spike in bitcoin “supply anxiety” would merely be a temporary blip in a larger upward trend leading up to the end of the year.

Bitcoin’s value dropped below $68,000 after a significant transfer from a cold wallet at Mt. Gox.

According to information from Arkham Intelligence, Mt. Gox looked to have moved bitcoin worth at least $9.6 billion out of its cold wallets early on Tuesday.

The price of Bitcoin has dropped by more than 1.5% in the last day and was trading for $67,818.

Anticipation of a more general movement upward

But according to analysts at QCP Capital, a sudden spike in “supply anxiety” is probably only a temporary blip on an overall increasing trend that will continue through the end of the year.

Three factors supported a medium- to long-term bullish outlook for bitcoin in the QCP Capital research released on Tuesday.

The QCP Capital analysts also noted that there is unprecedented political support for cryptocurrency in the United States, that the ether spot exchange-traded fund (ETF) will likely see strong demand once it starts trading, and that this will infuse new capital into the market.

All of these factors combined should drive up the price of cryptocurrency.

Less market turbulence throughout the summer

Joshua Lim, a co-founder of Arbelos Markets, believes that a number of the principal creditors of the now-defunct Mt. Gox exchange are seasoned financial businesses that specialize in troubled debt and probably employ hedging techniques to reduce the risk attached to their claims.

According to Lim, who spoke with Coin Shastra, some of the biggest owners of Mt. Gox claims are intelligent distressed debt investment organizations that have probably been hedging their claims holdings as they’ve amassed them and into a potential payout.

He went on to say that a market upsurge over the longer term would be restrained by an expected increase in the supply of cryptocurrencies as a result of the Mt. Gox creditor payouts and the FTX estate, making the market less volatile and likely to trade in a narrow range during the summer.

After the recent resolution of several significant industry-specific catalysts, including the launch of the spot bitcoin ETF, the halving, and the SEC’s spot ether ETF decision, we’re seeing sellers of options emerge.

Lim also noted that it’s likely that market participants are pricing in a more sedate range-bound market this summer due to the supply from Mt. Gox and the FTX estate as well as the overhang from SEC enforcement actions.

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.

Author: Puskar Pande

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