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.

CryptoQuant
Founder
Tackles
Bitcoin
Selling
Pressure
Fears
From
Mt.
Gox

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. 

Only
36%
Of
Mt.
Gox
BTC
Holdings
Allocated
To
The
Creditors

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

Go to Source
Author: Godspower Owie

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