Are Bitcoin Currency Scales ‘Overextended?’ 140K BTC Mt. Gox payment dispute

Bitcoin Analysis Now 140,000 Mt. Gox doubts the importance of the exchanges' BTC balances as coins line up for release.

In a June 24 post on X, noted analyst Matthew Hyland described the reduction in the currency supply as “overhyped.”

Bitcoin exchange rates at six-year lows

Total Bitcoin (BTC) holdings of crypto exchanges are at multi-year lows. Traditionally, this is considered a confirmation of the rise of interest, but not everyone is so sure.

For Highlander, the correlation between supply volatility and BTC price performance leaves a lot to be desired.

“The supply side is overhyped IMO,” he concluded with a chart comparing exchange supply to BTC/USD.

“BTC's exchange rate has decreased during the entire bear market, the price of BTC has continued to decrease with it. It is important for the long term, but in several years it has shown that this does not work.

Data from Glassnode, an onchain analytics firm that tracks the balances of 31 major trading platforms, currently puts the total number of coins in circulation at 2,317,495 BTC as of June 24, 2010.

This is an increase of approximately 18,000 BTC in the last 10 days, which is the last multi-year cumulative balance low. Exchanges had the same small amount of BTC last March 2018.

Scythe: Matt. Gox sale will have “minimal impact”

That picture may soon change — but for better or worse, consensus is gone.

Related: Can $60K BTC Price Hold Support? 5 things to know in Bitcoin this week

According to Cointelegraph, the unbroken exchange Mt. Gox bankruptcy proceedings are set to end in July.

This involves sending those funds to the users who lost them first, and opinions are divided on whether this would result in a mass distribution event.

“This definitely can't be positive,” wrote legendary trader Bob Lucas on X Chat this week.

Some say that Mt. Gox announcement, which hit a two-month low on June 24, is believed to have played a role in BTC/USD, but this topic is also disputed.

“There is no big ‘dirty' from Germany or Gox,” responded Samson Mou, CEO of Bitcoin adoption organization Jan3, referring to the recent movements of confiscated BTC owned by the German government.

“Currently, this dip in Bitcoin is driven by sentiment and fear, not by selling large holdings. Even when Gox coins do come to market, if there are sales, they will likely be through OTC and have little impact on price.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.