Jack Anderson
29 July 2024 17:50
Mt. Gox marked a significant event in cryptocurrency history when it began distributing bitcoins to its creditors for the first time in over a decade.
After more than a decade of legal proceedings, Bitcoin’s long-awaited distribution has finally arrived.BitcoinAccording to Glassnode Insights, the recovery from the Mt. Gox exchange collapse has begun. The incident marks a significant milestone for creditors who have been fighting for compensation since the exchange collapse in 2013.
Mt. Gox Distribution Arrived
The total volume of recovered coins is over 141,686 BTC, with just under 59,000 BTC already redistributed to creditors. The remaining 79,600 BTC are expected to be distributed soon. Kraken and Bitstamp The exchanges that were designated as responsible for this redistribution were Kraken, which received 49,000 BTC in the first split, and Bitstamp, which received 10,000 BTC.
Comparing the year-to-date distributions from the Mt. Gox site to other large institutions, these distributions are already larger than ETF inflows, miner issuances, and sales by the German government.
Market Impact and Investor Behavior
From a psychological perspective, this distribution represents the final chapter of a major market overhang that has persisted since 2013. The market impact was closely monitored, with Bitcoin prices trading between $66,000 and $68,000 throughout the distribution, suggesting lighter selling pressure and a more resilient demand profile than expected.
Interestingly, creditors have decided to accept BTC instead of fiat currency, a new concept in Japanese bankruptcy law. Given the decade-long legal battle, it is likely that many creditors are still active in the Bitcoin space. As a result, only a small portion of these decentralized coins are likely to be sold on the market.
HODLing trend
Distribution pressure from long-term holders (LTH) is relatively light and decreasing. LTH currently holds 45% of the network wealth, which is relatively high compared to the levels seen near the macro cycle peak. This indicates that long-term holders are in HODL mode, waiting for higher prices to be sold.
The share of wealth held by new investors is declining and well below the levels typically seen at macro market peaks, highlighting the overall shift towards HODLing behavior and the slowdown in new demand since Bitcoin’s all-time high of $73,000.
Summary and Conclusion
The Mt. Gox distribution is a major victory for bondholders who fought to be repaid in BTC. Despite the potential for sell-side pressure, the profile of bondholders suggests that they are more likely to be long-term holders. This, along with the growing balance sheets of long-term holders, suggests that HODLing is still the dominant market behavior.
Disclaimer: This report does not provide any investment advice. All data is provided for informational and educational purposes only. No investment decisions should be made based on the information provided here and you are solely responsible for your own investment decisions.
The exchange balances presented are derived from Glassnode’s comprehensive address label database, which is compiled from publicly published exchange information and a proprietary clustering algorithm. While we strive to ensure maximum accuracy in representing exchange balances, it is important to note that these figures may not always cover the entire reserves of an exchange, especially if the exchange does not disclose its official addresses. Users are urged to exercise caution and discretion when using these indicators. Glassnode is not responsible for any discrepancies or potential inaccuracies. Please read our transparency notice when using exchange data.
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