Bitcoin Faces Pressure as $15 Billion in BTC Could Hit the Market
Bitcoin’s lackluster performance could extend into September due to potential selling pressure from Mt. Gox and the US government.
The market might soon see nearly $15 billion worth of Bitcoin added to circulation, with the US government holding over 203,000 BTC valued at $12.1 billion and Mt. Gox preparing to release 46,000 BTC worth over $2.7 billion.
According to a report by crypto analytics firm Kaiko, Mt. Gox’s distribution of Bitcoin on Kraken before the end of 2024 is unlikely to disrupt the market significantly. Kraken’s liquidity profile suggests that any impact from these repayments will be minimal.
READ MORE: Economist Predicts Bitcoin Could Hit $100,000 in 3 Months
Despite Bitcoin’s substantial increase in value over the past decade, Mt. Gox creditors have not yet begun to sell their assets. Most creditors opted to receive Bitcoin rather than fiat, which may limit the amount of BTC entering the market.
Furthermore, the spot cumulative volume delta (CVD), which tracks net trade volumes, has not shown significant changes on Kraken post-distribution. Analysts from Bitfinex indicate that the prevailing low liquidity may persist into September, making it challenging for Bitcoin to surpass the $63,900 resistance level.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
