Originally published on: August 30, 2024
As Bitcoin’s momentum remains sluggish, concerns arise for September as sources hint at a potential $15 billion worth of additional selling pressure from Mt. Gox and the US government. This influx of over $14.8 billion worth of Bitcoin could flood the market, exerting more downward force on prices.
$15 Billion Potential Selling Pressure Overview
The United States government currently holds over 203,000 Bitcoin valued at $12.1 billion. Additionally, the defunct crypto exchange, Mt. Gox, is preparing to distribute another 46,000 Bitcoin worth over $2.7 billion. These impending actions could significantly impact the market.
Mt. Gox Bitcoin Distribution
Mt. Gox’s plan to distribute $2.7 billion worth of Bitcoin by the end of 2024 through Kraken is anticipated. However, experts suggest that these repayments may not yield a substantial market impact, as stated in a report by crypto analytics provider Kaiko.
Mt. Gox Creditors’ Dilemma
Over the past decade, Mt. Gox creditors have been expecting over $9.4 billion worth of Bitcoin, which has appreciated by over 8,500% in value since then. While this substantial growth may prompt investors to sell, Mt. Gox creditors have refrained from doing so, even after receiving nearly $4 billion worth of BTC at the end of July.
Market Impact and Analysis
Despite concerns surrounding the potential selling pressure, data shows that Mt. Gox’s Bitcoin distribution has not significantly affected market dynamics. Notably, the spot cumulative volume delta (CVD) on exchanges has not experienced a notable increase post the Mt. Gox BTC distribution.
Bitcoin Price Scenario
Amidst these developments, Bitcoin’s price continues to hover below the psychological mark of $60,000, following a 10.7% decline on the monthly chart. To end August positively, Bitcoin needs to surpass $64,300 in its monthly close. Analysts caution that low liquidity typical of summer months may persist into September, posing challenges for Bitcoin price movements.
Closing Thoughts
With a potential $15 billion worth of Bitcoin selling pressure looming from Mt. Gox and the US government, September could prove crucial for the cryptocurrency market. As investors navigate these developments, market conditions are expected to remain dynamic, requiring a strategic approach to mitigate risks and capitalize on opportunities.
