The long-awaited distribution of recovered Bitcoin from the Mt. Gox exchange collapse has finally commenced, marking the end of a decade-long legal battle. Over 141,686 BTC have been recovered, with nearly 59,000 BTC already redistributed to creditors.
According to a recent Glassnode report, Kraken and Bitstamp, selected as the designated exchanges for fund redistribution, have received 49,000 BTC and 10,000 BTC, respectively. This distribution surpasses recent ETF inflows, miner issuance, and even the German government’s sell-off in scale.
The creditors’ persistence in opting for BTC reimbursement over fiat currency set a precedent in Japanese bankruptcy law. Given the extensive time since Mt. Gox’s collapse, many creditors likely remain active in the Bitcoin space, suggesting only a subset of distributed coins may hit the market.
Despite the potential for sell-side pressure, Bitcoin’s price has remained steady between $66,000 and $68,000 throughout the distribution. This resilience may indicate lighter-than-expected selling or robust demand.
Analysis of Kraken and Bitstamp’s spot cumulative volume delta (CVD) shows only marginal upticks in sell-side pressure, supporting the theory that creditors may be adopting a long-term holder mindset.
Bitcoin long-term vs. short-term supply divergence
The current market trends indicate a shift towards holding onto investments for the long term. Supply Last Active metrics highlight a decrease in long-term investor activity, while the Realized Cap HODL Wave suggests a drop in the share of new investor assets.
Long-term investors currently hold 45% of the total network wealth, a notably higher percentage than seen in past market peaks. This indicates that those who are patient may want to wait for prices to increase before selling their investments.
A distinction arises between the quantities held by investors for the long haul versus those held for shorter periods, as the former increases while the latter decreases. The Long-Term Holder Binary Spending Indicator indicates a reduction in selling pressure, adding weight to the idea of holding onto investments.
As the Mt. Gox saga wraps up, it seems that steadfast, long-term investors are now at the forefront of the market. The limited impact on the market from this development indicates how the Bitcoin landscape has matured since the exchange’s downfall in 2013, showing a strengthened ability to withstand potential selling pressures.
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