Now, Bitcoin Analysis questions the relevance of the exchange’s BTC balance as 140,000 Mt. Gox coins are scheduled to be released.
In a June 24 post on X, popular commentator Matthew Hyland described the decline in exchange supply as “overestimated.”
Bitcoin exchange balance falls to lowest level in 6 years
Total Bitcoin (BTC) balances on cryptocurrency exchanges are at their lowest level in years. Traditionally, this is seen as evidence of a surge in demand, but not everyone is so convinced.
For Hyland, the correlation between supply fluctuations and BTC price performance leaves something to be desired.
“The supply side IMO is overrated,” he summarized, accompanied by a chart comparing exchange availability with BTC/USD.
“During the entire bear market, BTC on exchanges fell, but BTC prices continued to fall. “It’s important in the long run, but over the years it turns out it’s not.”
The total number of coins currently available for purchase is 2,317,495 BTC as of June 24, according to data from Glassnode, an on-chain analytics company that tracks balances across 31 major trading platforms.
This is an increase of approximately 18,000 BTC over the past 10 days and is currently at a multi-year low total balance. The last time exchanges had a similar amount of BTC available was in March 2018.
Mow: Mt. The Gox sale will have “minimal impact.”
Things may soon change, but for better or worse, there is a lack of consensus.
Related: Can $60K BTC Price Support Hold? 5 things you need to know about Bitcoin this week
As Cointelegraph reported, the bankruptcy proceedings of defunct exchange Mt. Gox, which held 140,000 BTC worth nearly $9 billion, are set to conclude in July.
This involves sending those funds to users who lost their original funds, and there is disagreement as to whether this will result in a mass distribution event.
“It certainly can’t be positive,” popular trader Bob Loukas wrote in this week’s X discussion.
Some people say Mt. I believe the Gox announcement played a role in BTC/USD hitting its lowest level in nearly two months on June 24th, but this topic is also debatable.
“There are no large-scale ‘dumps’ in Germany or Gox,” responded Samson Mow, CEO of Bitcoin adoption company Jan3, referring to the recent movement of confiscated BTC owned by the German government.
“The current decline in Bitcoin is not caused by massive asset selling, but purely by emotion and fear. Even if Gox Coins do hit the market, any sales, if any, will likely take place over the OTC and have minimal impact on the price.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.