Bitcoin may face additional downward pressure as nearly $15 billion worth of Bitcoin from Mt. Gox and the US government could soon enter the market. This influx could potentially affect Bitcoin's sluggish momentum, carrying over into September.
Bitcoin selling pressure. Source: Kaiko
Read more: Final Batch of Mt. Gox Payouts Set to Commence via Bitstamp
According to an August 29 report by Kaiko, the impact of these distributions might be mitigated:
“Kraken has managed Bitcoin ETF flows with only minor slippage at market close. Its liquidity profile suggests that the Mt. Gox repayments are unlikely to cause significant structural issues in the broader market.”
Despite the anticipated distribution, Kaiko suggests that Kraken’s liquidity should absorb the impact without major disruptions.
Mt. Gox creditors have been waiting for their repayments for a decade. The recent distribution of nearly $4 billion worth of Bitcoin in July saw most creditors opt to hold rather than sell. This trend might continue, as:
“Creditors chose to receive Bitcoin instead of fiat, a change in Japanese bankruptcy law. Consequently, it is likely that only a fraction of these distributed coins will be sold on the market,” as noted in a Glassnode report from July 29.
BTC: Mt. Gox trustee outflows. Source: Glassnode
The spot cumulative volume delta (CVD), which measures the net difference between buying and selling trade volumes on centralized exchanges, showed no significant increase on Kraken following the distribution.
Bitcoin CVD, Kraken exchange. Source: Glassnode
Read more: Mt. Gox Creditors Receive Long-Awaited Bitcoin Payouts，Bitcoin price has fallen in recent days
Bitcoin’s price has remained below the psychological $60,000 mark, experiencing a 10.7% decline over the past month. To finish August positively, Bitcoin would need to close above $64,300.
BTC/USD, 1-day chart. Source: TradingView
Analysts from Bitfinex highlight that the lack of liquidity typical of summer may extend into September, making it challenging for Bitcoin to breach the $63,900 resistance level:
“Price reflects historical transactions. Bitcoin's recent rally reached the Short Term Holder (STH) realized price of around $63,900, leading to some profit-taking from this cohort.”
Additionally, Bitcoin has historically experienced negative returns in September, averaging -4.78% since 2013.
As the price of Bitcoin fluctuates, a growing number of companies have seized the opportunity to accumulate the cryptocurrency, further solidifying Bitcoin’s place on corporate balance sheets. Following Bitcoin’s all-time high in March, at least six companies—including five publicly traded ones—have collectively acquired 48,836 BTC, an investment estimated to be worth around $3.1 billion today.
WilfredBut with one step forward, it seems that China has taken two steps back according to a speech given by former finance minister Lou Jiwei at the prestigious Tsinghua WuDaoKou Chief Economist Forum in Beijing.
XingChiFormer Binance CEO CZ's first tweet after his prison release sparked attention, briefly mentioning future plans and enjoying freedom. BNB surged to a monthly high but quickly reversed, declining along with the broader crypto market.
KikyoChina's central bank announced a number of stimulus measures this week, creating liquidity conditions that analysts believe will help boost bitcoin prices.
AlexRobert Kiyosaki warns of a financial crisis influenced by AI, urging investment in Bitcoin and silver. He predicts Bitcoin could reach $1 million by 2030, advocating for safe haven assets.
EdmundChina’s aggressive stimulus package may stimulate global liquidity, but the country’s ongoing ban on cryptocurrency trading limits its direct impact on Bitcoin and other digital assets. While some crypto investors remain hopeful that the influx of liquidity will ultimately benefit Bitcoin’s price, significant gains have yet to materialize. With global markets closely watching both China’s economic recovery efforts and the crypto industry’s resilience, the next few months could prove pivotal for both sectors.
WenJunChina has shown great resilience, controlling more than 55% of Bitcoin mining despite ban.
XingChiSweden's authorities are cracking down on unlicensed cryptocurrency exchanges involved in organised crime and money laundering. They are also targeting Bitcoin mining operations, uncovering 90 million SEK in unpaid taxes from 18 firms.
WeatherlyA Bitcoin whale wallet was reactivated after nearly 11 years, sparking speculation of a connection to Satoshi Nakamoto. Data shows an increase in both large and small wallets, while mid-tier holders have decreased, reflecting a changing Bitcoin market.
WenJunElon Musk and President Nayib Bukele discussed global innovation and technology but avoided crypto conversations during their meeting in Austin. Musk praised Bukele’s leadership, while El Salvador’s Bitcoin investments continue to show positive returns.
WenJunCrypto market, looking at the BTC bull and bear cycle from the supply of LTH and STH. Golden Finance, will the adoption of ETF interfere with the accuracy of the data?
JinseFinanceCrypto prices took a hike recently but while some are optimistic that the crypto bulls are returning, others feel that it is just a bull trap in a bull market. What is your perspective on this?
CatherineHe is a big believer in the charting system and began predicting ADA's bearish trajectory in early Sep. 2022.
BeincryptoOn-chain data shows the Bitcoin price has now once again dipped below the realized price, suggesting the bear market may ...
BitcoinistSignificant whale activity between $22,000 and $24,800 adds to the complexity of the current spot market setup.
CointelegraphAnticipated volatility comes right on schedule for crypto as the weekly close already looks like a distant memory.
CointelegraphAnother wave of selling hit BTC and sent its price to lows not seen since December 2020. Does on-chain data suggest this dip is worth buying?
CointelegraphOn-chain data suggests Bitcoin price is discounted, but analysts caution against expecting a rapid recovery.
CointelegraphThe classic bottom zone reappears on the back of serious sell pressure stoked by mayhem on stablecoin markets.
CointelegraphBelow $30,000 is now traders’ preferred prognosis for Bitcoin price action with no let-up in the sell-off this week.
Cointelegraph