Bitcoin shows strong resilience! Although yesterday afternoon, it was suspected that Mt. Gox transferred more than 95,000 Bitcoins (nearly US$6 billion) to two unknown wallets, causing the market to fall to a low of US$62,369 amid risk aversion.
Later, screenshots leaked out of the community, indicating that they had received a letter from Kraken, indicating that they had received Mt. Gox’s payment to creditors and would start paying within the next one to two weeks ; however, distribution may still take some time. Or maybe the market is optimistic that Trump can continue to boost BTC... At the moment of writing, Bitcoin has just exceeded the 66,000 level, reaching a maximum of $66,117.
The trend of Ethereum is also close to that of Bitcoin, reaching a maximum of $3,517 before the deadline, up 1.03% in the past 24 hours.
Top 10 Token Performance
Under the rising trend of Bitcoin, other top ten tokens also rose simultaneously. The largest increase in the past 24 hours was XRP, which exceeded 7%; however, the recent dark horse public chain TON bucked the trend and fell 3.6% to US$7.33.
In the past 24 hours, the entire network liquidated more than 190 million US dollars
Amid the rising market price of Bitcoin, according to data from Coinglass, in the past 24 hours, the total amount of cryptocurrency liquidation across the entire network has reached nearly 200 million US dollars, and more than 64,000 people have been liquidated (the US dollar and the Air Force each accounted for approximately 100 million US dollars).
Recent good and bad news
The good news that may come to the market in the near future is the approval of the Ethereum spot ETF and Trump's speech at the Bitcoin Conference at the end of the month; the biggest bad news is the repayment of Mt. Gox. After all, the amount is close to the German government's. three times.
However, some analysts previously believed that investors who held Bitcoin in the early days of Bitcoin may be "diamond-rich Bitcoin holders." Therefore, Mt. Gox creditors who have received compensation are more likely to continue to hold part of it. It is paid in Bitcoin rather than sold directly.
Galaxy Research Director Alex Thorn also analyzed and commented at the end of June that the eventual selling pressure on Bitcoin triggered by Mt. Gox will be less than expected.
He explained that since nearly 75% of creditors choose Early payout (subject to accepting a 10% impairment), there will currently only be about 95,000 Bitcoins used for early payment of compensation (the remaining BTC will take longer to pay out) Payment):
- About 20,000 of these tokens belong to the claims fund
- 10,000 tokens belong to Bitcoinica BK
- There are about 65,000 coins left that are owed to individual creditors.
And he predicts that individual creditors will insist on holding Bitcoin more than the market expects:
- Creditors are mainly long-term Bitcoin holders. They are technology-savvy early adopters.
- Individual creditors have rejected attractive offers from claims funds over the years, suggesting they want their Bitcoin back rather than compensation denominated in U.S. dollars.
- The capital gains tax implications of a sale can be significant. Even though only 15% of physical claims have been recovered as prices have increased, claim holders have gained 140x (in USD) on the Bitcoin they recovered since the bankruptcy.
Therefore, in summary, he believes that the selling pressure on Bitcoin will not be greater than investors imagine. But BCH may have a more serious decline due to its small liquidity.
Further reading: How will gold and Bitcoin be affected after the Trump shooting? How long can the risk-off market last?
