Bitcoin Faces Pressure Following Mt. Gox Bitcoin Release

Bitcoin's value briefly dropped below $66,000 right after Mt. Gox began its BTC distribution process.

The exchange has begun dispersing assets to creditors via Kraken, leading to the price drop. Despite this decline, BTC managed to recover some of the losses, currently trading at $66,340.

According to CryptoQuant’s Ki Young Ju, Mt. Gox creditors recently received Bitcoin on Kraken. Despite this, there has been no significant increase in trading activity or Bitcoin outflows on the platform, which Ju interprets as a potentially positive sign.

Mt. Gox creditors received #Bitcoin 4 hours ago.

There has been no significant spike in hourly spot trading volume dominance or $BTC outflows on Kraken since then.

We need to wait for the Asian time zone, but it’s a positive sign so far. pic.twitter.com/xxGSiYt33I

— Ki Young Ju (@ki_young_ju) July 23, 2024

Arkham Intelligence reports that Mt. Gox recently transferred 37,477 BTC, worth around $2.5 billion. Since early July, the total distributed amounts to 52,549 BTC ($3.31 billion), sent to various exchanges including Kraken and Bitstamp.

Bitcoin has fallen below the average purchase price of $66,500 for those holding the asset for 1-3 months. Focus is now on the $63,600 range for longer-term holders. Furthermore, spot Bitcoin ETFs experienced their first outflow in 12 days, with $78 million exiting on July 23.

Data from CryptoQuant shows a notable decrease in Bitcoin deposit addresses across exchanges, dropping to 250,000. This reduction signals a shift in investment behavior, suggesting that many investors are holding onto their Bitcoin, possibly expecting future price increases.

Investors are unwilling to sell #Bitcoin

“A decreased willingness to sell assets could lead to a reduction in the supply of Bitcoin on the market, which, with steady or increasing demand, may cause price increases.” – By @AxelAdlerJr

Full post 👇https://t.co/HdipPeIh6h pic.twitter.com/jhNDHiSKst

— CryptoQuant.com (@cryptoquant_com) July 23, 2024

Analysts stress the importance of Bitcoin maintaining levels above $65,000 to avoid further declines. The arrival of spot Ethereum ETFs may also shift market attention away from Bitcoin.