The now-defunct Tokyo-based crypto platform Mt. Gox recently executed a huge transaction carrying over 48,641 Bitcoin, igniting speculations about an upcoming repayment to creditors after the firm went bankrupt years ago. Thus, cryptocurrency enthusiasts and investors are closely watching the reaction of Bitcoin as Mt. Gox continues to carry out massive BTC transactions.
However, Ki Young Ju, the Chief Executive Officer (CEO) and founder of CryptoQuant, believes that the FUD around the Mt. Gox Bitcoin repayment process is not as significant as it seems.
In a significant development, cryptocurrency exchange Mt. Gox carried out a substantial transfer of 48,641 Bitcoin on Tuesday morning to a wallet address that was reportedly connected to San Fransisco-based crypto exchange, Kraken. This transfer, which is valued at over $3.10 billion in today’s market, could be part of the eagerly expected conclusion of the platform’s bankruptcy proceedings.
The large-scale transaction, which coincides with recent reports that Mt. Gox creditors could be receiving their repayments in the next 7 to 14 days, according to an email from Kraken sent to users, has caused quite a negative sentiment among crypto investors and traders.
Addressing investors’ negative outlook around the development, Ki Young Ju, the founder of CryptoQuant, stated that the fear, uncertainty, and doubt (FUD) around these massive BTC transactions are overestimated.
According to the CEO, Bitcoin’s market cap growth is outpacing its realized cap growth, indicating high demand. Ju noted that despite $224 billion worth of BTC sold since 2023, the crypto asset is still up by over 350%, compared to Mt. Gox’s $3 billion worth of BTC, which is only 1% of the realized cap increase in this bull cycle, should the coin be sold on Kraken.
Although the founder believes that the impact of Mt. Gox’s massive transaction is overestimated, he has warned that Bitcoin is still vulnerable to speculative FUDs, since this is the only flaw of the flagship asset.
Furthermore, drawing attention to the German Government’s large-scale BTC transfer, Ju stated that while others were dumping their BTC in a panic, permanent holders were purchasing more coins during the FUD around the development, indicating rising confidence among long-term holders.
Over the past weeks, Mt. Gox has been executing huge BTC transactions in connection to the highly anticipated resolution of the platform’s repayment process. Despite these significant moves, Maarten, a market watcher and community manager at CryptoQuant, claims that just 36% of the platform’s BTC holdings have been distributed to former users.
Maarten revealed the update following the aforementioned 48,641 BTC transfer believed to be connected with Kraken. According to the market watcher, this is the first big move for Bitcoin, starting the actual distribution process. Meanwhile, Mt Gox’s holdings currently boast 141,686 BTC, which will be gradually dispersed to creditors.
Featured image from iStock, chart from Tradingview.com
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