Mt. Gox Distribution Sparks Bitcoin Speculation
NAIROBI (CoinChapter.com) – On May 28, the Mt. Gox Trustee, responsible for distributing 141,000 BTC from the collapsed exchange, initiated an internal wallet consolidation. This action, confirmed by former CEO Mark Karpeles as a step towards creditor distributions, sparked a notable response in the market. The distributions are anticipated to be finalized by October 2024, marking the first significant activity involving these funds in more than ten years.
Currently, the Realized Cap has reached an all-time high (ATH) of $580 billion. However, there has been a slowdown in new liquidity inflows since late April. Analysis of the Realized Cap HODL Waves shows that coins less than three months old make up 41% of the network’s wealth. This indicates a shift in wealth towards new demand, which typically exceeds 70% saturation during bullish cycles.
Glassnode’s Point-in-Time (PiT) metrics provide a transparent view of these movements. PiT metrics are unchangeable, capturing the state of each metric with known wallet clusters at the time of observation. This internal management involved multiple tranches of BTC being transferred, illustrating the complex processes involved in preparing for distribution.
Market Position of BTC Long-Term Holders
Long-term holders of Bitcoin (LTHs) currently hold a strong position, with very few coins being held at a loss. This is a positive sign of the overall health of the market, as only 0.03% of LTHs bought Bitcoin at a higher price than the current one.
Furthermore, LTHs hold a large majority of the Bitcoin supply in a profitable position, with over 85% of their holdings currently in the green. This indicates a strong conviction among long-term investors and is a characteristic of the initial euphoric stage of a bull market.
Market consolidation near its ATH suggests significant investment at current price levels, leading to increased sensitivity to price volatility. Notably, short-term holders have a considerable amount of their supply in a loss position, which is common during corrections in a bull market.
As of June 2024, Bitcoin (BTC) is trading at $70,930.76, marking a 4.29% increase in the past week. The market cap has reached $1.4 trillion, with a 24-hour trading volume of $35 billion. The renewed speculation following the Mt. Gox news has fueled a surge in prices.
The market has absorbed a substantial amount of distribution from Single-Cycle holders, leading to prices surging to an ATH of $73k. The $68k level has become crucial, turning recent buyers’ positions into unrealized profits. This indicates a strong market foundation, poised for potential upward movements.