Mt.Gox, the now-defunct Bitcoin (BTC) exchange that suffered a major collapse in 2014, recently began distributing payouts to waiting creditors.
The release of a significant amount of BTC worth $9.4 billion on May 27 raised concerns about potential market liquidity and price stability. In response, online market intelligence platform CryptoQuant provided an analysis of the potential impacts of this development.
Potential market impacts
According to the company analysis138,000 Bitcoins moved significantly from Mt. Gox in seven transactions, each worth between 4,000 and 32,000 Bitcoins.
Initially, these funds were transferred to one address and distributed among three separate addresses, each containing 47,400 Bitcoins.
Please note that these addresses remain under Mt.Gox’s control Rehabilitation Superintendentand no repayments have been made to creditors to date. The consolidation of these funds suggests that the Trustee is actively preparing for future repayments under the Rehabilitation Plan.
Currently, transfers to Trustee-controlled addresses have no immediate market impact. However, the company notes that the final repayment to creditors, which is scheduled to be completed by October 31, 2024, may impact the Bitcoin price. market dynamics.
For CryptoQuant, the market impact will depend on various factors, including the timing, size and method of repayments. If and when the Trustee begins to repay creditors, it can introduce a significant amount of Bitcoin into the market, affecting liquidity and price stability. The company concluded by stating:
These moves do not result in direct selling pressure on Bitcoin as the transfers occurred to addresses of the same entity (the Mt. Gox Rehabilitation Trustee) and are not still available on the open market.
Bitcoin price is heading towards “level 3” and is $91,000
As concerns grow over the potential negative impact of Mt.Gox’s repayment plan on the Bitcoin price, a Crypto Con analyst offers observations to the current state of Bitcoin price bands.
Bitcoin price bands refer to specific price ranges that analysts closely monitor to gauge potential market movements. These bars act like magnets, pulling the price to certain levels.
In particular, as seen in the chart above, “Tier 3” at $91,539 has proven to be a significant price target. Despite the ongoing consolidation At level 2.5, the analyst believes that the market is showing signs of moving towards level 3.
Additionally, Crypto Con notes that historical data suggests that the upper range of the cycle, valued at $123,000, is likely to be reached with precision during Bitcoin’s latest “parabola”.
At the time of writing, the largest cryptocurrency was trading at $67,400 on the market, slowly losing value after repeated failed attempts to consolidate above the $70,000 level, which is seen as the last hurdle before a potential retest of the current record high of $73,700 reached on March 14.
Featured image from Shutterstock, chart from TradingView.com
