Key Takeaways
- Mt. Gox and the U.S. government could add $15 billion in Bitcoin selling pressure.
- The U.S. government holds over 203,000 Bitcoin, worth $12.1 billion.
- Mt. Gox creditors have mostly retained their Bitcoin despite past distributions.
Bitcoin’s sluggish momentum may continue into September, according to Coin Telegraph.
Nearly $15 billion worth of Bitcoin could soon hit the market, primarily from the U.S. government and the defunct exchange Mt. Gox.
The U.S. government currently holds over 203,000 Bitcoin, valued at $12.1 billion, while Mt. Gox is set to distribute 46,000 Bitcoin, worth over $2.7 billion, before the end of 2024.
Kaiko data
Despite the potential influx, an August 29 report by Kaiko suggests that the market impact may be limited.
Kraken’s liquidity profile indicates that it could absorb the additional selling pressure from Mt. Gox’s repayments without causing structural issues.
Interestingly, many Mt. Gox creditors have chosen to hold onto their Bitcoin rather than sell, even though the value of Bitcoin has appreciated by over 8,500% since their claims were filed.
A recent Glassnode report highlights that during a previous $4 billion Bitcoin distribution, most creditors opted to retain their holdings, a trend that may continue.
In the broader market, Bitcoin’s price remains below $60,000, struggling to overcome resistance around $63,900. Historical data indicates that September has generally been a challenging month for Bitcoin, with average returns of -4.78% since 2013, suggesting that the cryptocurrency may continue to face headwinds.
