Despite concerns over the Mt. Gox bankruptcy estate’s activities and rumors of a U.S. government Bitcoin sell-off, Bitcoin exchange inflows – the total amount of BTC sent to exchanges have significantly decreased since early August.
CryptoQuant data shows that nearly 94,000 BTC was transferred to exchanges on August 4, followed by around 49,000 BTC on August 5, and approximately 51,000 BTC on August 6. After these transfers, exchange inflows continued to decline, with the most recent data from August 20 showing only 31,000 BTC sent to exchanges, suggesting reduced selling pressure in the market.
Mt. Gox shifting funds contributing to selling pressure?
One factor contributing to market speculation is the movement of funds by Mt. Gox. On August 20, Mt. Gox moved 12,000 BTC, valued at roughly $709 million, to unknown wallets, marking the first movement of funds in over three weeks. According to Arkham Intelligence, Mt. Gox wallets still hold 44,899 BTC, valued at approximately $2.7 billion at the time of writing.
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The potential impact of Mt. Gox’s Bitcoin distribution has been widely discussed among analysts. Recent data suggests that most Mt. Gox creditors are holding onto their Bitcoin, with no large-scale sell-off occurring. Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad, suggested that this could be due to the demographics of the Mt. Gox creditors, many of whom are early adopters who have waited a decade for their reimbursement.
Additionally, rumors of a potential U.S. government Bitcoin sell-off surfaced after a transfer of 10,000 BTC to an unknown wallet on August 14. However, some analysts, including Ryan Lee, chief analyst at Bitget Research, noted that this transfer might be custody-related and doesn’t necessarily indicate an intention to sell the Bitcoin.
Cre: cointelegraph.
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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