Crypto Investors Remain Cautious as Mt. Gox Repayments Begin

In early July, the once prominent crypto exchange, Mt. Gox, began the process of repaying creditors who were affected by the 2014 hack. Despite the distribution of Bitcoin and Bitcoin Cash owed to these creditors by Kraken, the price of Bitcoin has not fluctuated significantly, indicating a sense of stability in the market. Concerns arose among crypto investors regarding a potential sell-off by creditors, reminiscent of the sharp price drop seen when Germany’s Saxony state sold confiscated BTC.

However, analysis from CryptoQuant has revealed an interesting trend among Mt. Gox creditors receiving their long-awaited Bitcoin refunds. Instead of rushing to sell off their tokens, there has been a noticeable increase in BTC withdrawals from Kraken. This behavior suggests a strong “hodling” sentiment among recipients, with over 5,000 BTC, valued at approximately $329 million, being moved to cold wallets in the past 24 hours. This indicates a preference among affected users to securely store their Bitcoin rather than immediately liquidate their holdings.

While the volume of BTC being withdrawn may seem modest, it serves as a positive signal for the market. The decision to hold onto Bitcoin and store it securely reflects confidence and a long-term investment strategy among these creditors. Additionally, the lack of significant spikes in trading volume on Kraken further supports the notion that creditors are not rushing to sell off their assets. According to CryptoQuant CEO Ki Young Ju, there has been no notable increase in hourly spot trading volume dominance or BTC outflows on Kraken following the repayments.

The behavior of Mt. Gox creditors in response to receiving their Bitcoin refunds highlights a level of confidence in the market and a commitment to long-term investment strategies. Despite initial concerns of a potential sell-off triggering a price drop, the data suggests that creditors are choosing to hold onto their Bitcoin and store it securely for the future. This trend could potentially have a stabilizing effect on the market and instill further confidence among crypto investors.