Nearly half of the Bitcoin owed to Mt. Gox creditors has been distributed, with many creditors holding onto their coins after a decade of waiting.
According to a July 29 report by Glassnode, 41.5% (59,000 BTC) of the total 141,686 Bitcoin has been redistributed to creditors of the defunct Mt. Gox exchange.
Despite receiving nearly $4 billion worth of Bitcoin, the Mt. Gox creditors are not selling, Glassnode’s report reveals.
“Creditors opted to receive BTC, rather than fiat, which was new in Japanese bankruptcy law. As such, it is relatively likely that only a subset of these distributed coins will be truly sold onto the market,” the report stated.
After more than a decade of legal process, the long awaited creditor distribution of the #Bitcoin recovered from the Mt.Gox exchange collapse is underway.
From a psychological perspective, this represents the final chapter in what has been a major market overhang over the… pic.twitter.com/DA5Sup4lBF
— glassnode (@glassnode) July 29, 2024
Mt. Gox Creditors Owed $9.4 Billion Worth of BTC
Approximately $9.4 billion worth of Bitcoin was owed to about 127,000 Mt. Gox creditors, who have been waiting for over ten years to recover their funds.
This long wait had the potential to create significant sell pressure that could impact Bitcoin’s price.
The distribution report comes a week after Kraken completed the Mt. Gox Bitcoin distribution to creditors on July 24.
Mt. Gox, once a prominent Bitcoin exchange based in Japan, collapsed in 2014 following a major hack.
Founded in 2010, the exchange handled over 70% of all Bitcoin transactions at its peak.
The security breach led to the loss of 850,000 BTC, marking one of the largest hacks in the history of cryptocurrency.
According to Glassnode, the theory that Mt. Gox creditors are not selling their received Bitcoin is supported by underlying data from cryptocurrency exchanges.
The spot cumulative volume delta (CVD), which measures the net difference between spot buying and selling trade volume on centralized exchanges, has shown no significant uptick on Kraken following the Mt. Gox BTC distribution.
“We can see a marginal uptick in sell-side pressure following the distribution. However, this remains well within typical day-to-day ranges,” the report notes.
The lack of selling pressure is surprising, given that Bitcoin’s price has surged by over 8,500% in the ten years since Mt. Gox’s collapse.
The current distribution of Bitcoin suggests that investors are opting to hold their coins, a strategy known as “hodling” in the cryptocurrency community.
Digital Asset Products Continue Inflow Streak
The digital asset investment landscape continues to draw substantial interest, with inflows maintaining a positive trajectory for the fourth consecutive week.
Last week, the sector saw an influx of $245 million, with year-to-date (YTD) inflows reaching a record $20.5 billion.
Bitcoin products have continued to attract significant investments.
Last week alone, Bitcoin saw inflows amounting to $519 million, bringing its month-to-date inflows to $3.6 billion and YTD inflows to an unprecedented $19 billion.
The surge in investment is believed to be influenced by the political climate in the United States, particularly with comments from the election campaign suggesting Bitcoin could be considered a strategic reserve asset.
Additionally, the anticipation of a potential rate cut by the Federal Reserve in September 2024 has bolstered investor sentiment toward Bitcoin.
