As Mt Gox Moves $9 Billion Bitcoin, CryptoQuant CEO Says Impact Of The Defunct Exchange On BTC Price Is ''Overestimated''

As Mt Gox Moves $9 Billion Bitcoin, CryptoQuant CEO Says Impact Of The Defunct Exchange On BTC Price Is ”Overestimated”

Updated: 17 July 2024

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Mt. Gox moved over 140,000 Bitcoin (BTC) worth around $9 billion in just three hours on July 16 to spark panic amongst crypto traders, but CryptoQuant CEO Ki Young Ju says the Mt. Gox FUD (fear, uncertainty and doubt) is “overestimated.”

“Even if Mt. Gox’s $3B is sold on Kraken, it’s just 1% of the realized cap increase in this bull cycle — manageable liquidity,” Ju wrote in a July 16 X post.

Strong Demand For BTC Could Absorb Potential Mt. Gox Selloff

According to the CryptoQuant CEO, BTC’s market cap growth currently outpaces its realized cap growth to signal strong demand for the crypto. He also pointed to the fact that BTC’s price is up 350% despite investors selling $224 billion worth of the flagship crypto since 2023.

Mt. Gox’s wallets still hold 138.985K BTC worth over $9 billion, according to data from Arkham Intelligence. The dollar value of the exchange’s holdings increased more than $343 million over the past 24 hours after BTC’s price climbed more than 3% during the same period to trade at $65,300.26 as of 3:35 a.m. EST.

Crypto Investor Sentiment Underwent A Major Shift Over The Last Week

Even with the potential selloff by Mt. Gox creditors looming, crypto market sentiment remains positive. The Crypto Fear and Greed Index has risen 4 points since yesterday to 69 today, indicating “Greed” in the market. Investor sentiment has also shifted substantially over the last week, with the index dropping to 28 just 7 days ago.

Permanent holders, mostly custodial wallets with no outflows, accumulated 85K #Bitcoin in the last 30 days.

These wallets are neither ETFs, exchanges, nor miners. During the same period, 16K BTC flowed out of ETF holdings.

While some panic sell, "the others" are buying. pic.twitter.com/t9oN6pVwST

— Ki Young Ju (@ki_young_ju) July 10, 2024

Ju revealed that “permanent holders,” who are custodial wallets with no outflows, have accumulated 85K BTC throughout the past month while many investors panic sold. During the same period, 16K BTC flowed out of ETF (exchange-traded fund) holdings as well.

Meanwhile, Galaxy Digital’s head of research, Alex Thorn, predicted that the expected downside from the Mt. Gox repayments is lower than many in the market might anticipate.

“We think fewer coins will be distributed than people think & that it will cause less sell pressure than market expects,” he said in a June 24 X thread.