Bitcoin whales on ‘overvalued’ Mt. Gox FUD is set to pile up more: analyst
The impact of the Mt.Gox payout on Bitcoin is still overstated and will likely be used by whales to pick up more BTC at a discount, said CryptoQuant CEO Ki Young Ju.
In a July 16 post for X, Ju said the impact of the Mt Gox sale – $3 billion to $9 billion in BTC – is insignificant compared to the overall increase in Bitcoin (BTC) capitalization over the past 18 months. .
Ju.
Additionally, Ju noted that Bitcoin's price is highly vulnerable to speculative “FUD” — fear, uncertainty and doubt — surrounding perceived negative events and the underlying selling activity behind it.
According to Ju, while many investors are “panic selling”, the “smart money” is constantly buying more bitcoins.
Ju pointed to a July 10 post that cited data that “permanent holders” – large individual guardian wallets without any flow – accumulated 85,000 BTC in the previous 30-day period.
Over the past several weeks, Mt. Gox trustees have switched funds from cold wallets to hot wallets on several occasions.
Mt Gox is currently worth 138,985 BTC worth $8.93 billion, according to data from Arkham Intelligence.
On July 5, the collapsed Japanese crypto exchange Mt. Gox has notified creditors that it has begun returning nearly 140,000 bitcoins to its users.
Related: Traders of Mt. Gox Bitcoin recovers over $65K when they cancel BTC transfers
However, Alex Thorne, head of research at Galaxy Digital, estimates that only 65,000 of the 141,000 total bitcoins will fall on the market, significantly reducing the expected decline.
Similarly, analysts told Cointelegraph that much of the selling pressure in Mt. Gox sales are “overpriced” and believe that BTC's price action could be the worst.
Bitcoin's price has risen 12% over the past seven days, is off a two-month low of $53,500 on July 4 and is currently trading at $65,154, according to TradingView data.
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