Many Mt. Gox creditors have finally received their Bitcoin (BTC) repayments after a decade of waiting. News reports have shown that many of the creditors were repaid via the US-based cryptocurrency exchange Kraken. As expected, the news of more BTC potentially flooding the market has sparked concerns about the impact on the price of Bitcoin. Analysts and investors have expressed concerns that the influx of Bitcoin into the market could result in increased selling pressure, potentially driving down the price of the cryptocurrency.

However, data reports have shown that many creditors whose debts have been paid, deciding to hold on their assets instead of selling them. This trend reflects the prevailing bullish sentiment among BTC holders, who seem confident in the cryptocurrency’s long-term potential.

Despite the bullish mentality, on-chain data suggests Mt. Gov still has enough BTC to potentially flood the market. According to Arkham Intelligence, the defunct exchange still has over 80,000 BTC, which is valued at around $5.37 billion at the current Bitcoin price.

Mt. Gox Bitcoin Asset Analysis

Bitcoin is not yet unthreatening in the hands of Mt. Gox. As the Arkham dashboard shows, Mt. Gox’s BTC holdings have fallen from 142,000 BTC in early July to 80,000 BTC at the time of writing. This means that over 62,000 BTC have been distributed to creditors in the past three weeks.

While some creditors chose to hold on to their Bitcoins, many undoubtedly took the opportunity to cash them out after a decade of waiting. This wave of selling contributed to $170 billion loss from the cryptocurrency market as Bitcoin fell below $54,000. Many would argue that this was an overreaction from other market participants, as many of them rushed to reduce their exposure even before creditors initiated sell-offs. Interestingly, Bitcoin was under intense pressure from simultaneous sale of occupied Bitcoins issued by the German state of Saxony.

The initial fear and uncertainty has since cooled, although on-chain data shows that Mt. Gox creditors are still receiving payments. Interestingly, Arkham data indicates that about 0.02 BTC has been recently sent to eight Bitstamp deposit addresses, another exchange used for these repayments. Similarly, CryptoQuant CEO Ki Adolescent Ju it was revealed that These repayments did not lead to an escalate in the dominance of spot trading volume on the Kraken exchange.

So far, Mt. Gox has managed the payouts effectively, easing the selling pressure. Bitcoin also responded positivelyshowing stability and growing maturity that helped prevent further declines. Mt. Gox still has 80,128 BTC in its wallet. We’ll see how the market reacts as the installments are paid in the next few weeks. At the time of writing, Bitcoin is trading at $67,085, up 5% in the last 24 hours.

Featured image created with Dall.E, chart from Tradingview.com