Mt. Gox’s recent Bitcoin transfer has left it with a $3 billion BTC balance. Ahead of the U.S. July jobs report on August 2nd, Bitcoin selling has continued.
Mt. Gox moved 33.96K BTC, worth $2.25 billion, to addresses likely linked to BitGo, leaving it with 46.16K BTC, or $3.06 billion. This move might reduce future market pressure by easing concerns about oversupply.
Mt. Gox Bitcoin Transfer Reduces Supply Pressure
On July 30th, Mt. Gox transferred $3.1 billion worth of Bitcoin to BitGo, significantly reducing the balance in its trustee estate. The remaining balance now stands at $3.06 billion, according to Arkham’s data. This large reduction suggests that the supply pressure from Mt. Gox may soon diminish.
Despite market concerns, the recent distribution did not cause adverse effects. Data from Glassnode indicates there were no significant sell-side reactions on major exchanges like Kraken and Bitstamp, which handled the repayments. Notably, Kraken’s Spot Cumulative Volume Delta (CVD) only showed a slight increase after the transfer, indicating minimal selling pressure.
Mt. Gox Transfer Eases Pressure; U.S. Sell Pressure Looms
The recent reduction in Mt. Gox’s BTC holdings is a positive development for the market, potentially easing one major source of supply pressure. However, concerns remain about sell pressure from the U.S. government, which holds approximately $13 billion in BTC. The government recently added to market jitters with the transfer of $2 billion in BTC, reinforcing bearish sentiments that have been evident since June.
CryptoQuant analyst Axel Adler notes, “The sell pressure from the U.S. and German governments has significantly increased bearish market dominance this summer. Net Taker Volume continues to show predominantly selling activities, reflecting the market’s negative outlook.” This bearish trend is further highlighted by recent declines in Bitcoin prices, which are currently approaching $63,000, in anticipation of the critical U.S. July jobs report.
In summary, while the Mt. Gox Bitcoin transfer reduces one significant source of supply pressure, the influence of U.S. government BTC holdings keeps market sentiment fragile. Investors are keenly watching the upcoming U.S. July jobs report for potential signs of market relief or ongoing bearish trends.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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