CryptoQuant Founder Tackles Bitcoin Selling Pressure Fears From Mt. Gox

In a significant development, cryptocurrency exchange Mt. Gox carried out a substantial transfer of 48,641 Bitcoin on Tuesday morning to a wallet address that was reportedly connected to San Fransisco-based crypto exchange, Kraken.

Crypto platform Mt. Gox recently executed a massive transaction, moving 48,641 Bitcoin, sparking speculations regarding an upcoming repayment to creditors following the firm's bankruptcy years ago. As Mt. Gox continues to carry out large-scale BTC transactions, cryptocurrency enthusiasts and investors are keeping a close eye on Bitcoin's response.

However, Ki Young Ju, the founder of CryptoQuant, believes that the FUD surrounding the Mt. Gox Bitcoin repayment process is not as significant as it seems.

CryptoQuant Founder Downplays Bitcoin Selling Pressure Fears From Mt. Gox

In a key development, cryptocurrency exchange Mt. Gox performed a large-scale transfer on Tuesday morning, moving 48,641 Bitcoin to a wallet address that is reportedly linked to San Fransisco-based crypto exchange Kraken. This transfer, which is valued at over $3.10 billion in today's market, could be part of the long-awaited conclusion of the platform's bankruptcy proceedings.

The large-scale transaction, which comes amid recent reports that Mt. Gox creditors could be receiving their repayments in the next 7 to 14 days, according to an email from Kraken to users, has sparked some negative sentiment among crypto investors and traders.

Addressing investors' pessimistic outlook around the development, Ki Young Ju, the founder of CryptoQuant, stated that the fear, uncertainty, and doubt (FUD) surrounding these massive BTC transactions is being overestimated.

According to the CEO, Bitcoin's market capitalization growth is outpacing its realized cap growth, indicating high demand. Ju noted that despite $224 billion worth of BTC being sold since 2023, the crypto asset is still up by over 350%. Compared to this, Mt. Gox's $3 billion worth of BTC, which is only 1% of the realized cap increase in this bull cycle, would be sold on Kraken.

While the founder believes that the impact of Mt. Gox's large-scale transaction is being overestimated, he has warned that Bitcoin is still vulnerable to speculative FUDs, as this is the only flaw of the flagship asset.

Moreover, highlighting the German Government's large-scale BTC transfer, Ju stated that while others were dumping their BTC in a panic, permanent holders were purchasing more coins during the FUD around the development, indicating rising confidence among long-term holders.

Only 36% Of Mt. Gox BTC Holdings Allocated To The Creditors

Over the past weeks, Mt. Gox has been making huge BTC transactions in relation to the highly anticipated conclusion of the platform's repayment process. Despite these significant moves, Maarten, a market observer and community manager at CryptoQuant, claims that only 36% of the platform's BTC holdings have been allocated to former users.

Maarten shared this update following the aforementioned 48,641 BTC transfer, which is believed to be connected with Kraken. According to the market observer, this is the first big move for Bitcoin, starting the actual distribution process. Meanwhile, Mt Gox's holdings currently stand at 141,686 BTC, which will be gradually dispersed to creditors.

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