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Mt.GOX + GBTC: 700,000 Bitcoins Waiting to Be Sold? BTC Price Continues to Decline

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Mt.GOX + GBTC: 700,000 Bitcoins Waiting to Be Sold? BTC Price Continues to Decline

According to the latest letter received by users of the bankrupt exchange Mt. Gox, Mt. Gox may unlock the BTC for creditors in the next two months. In addition, Grayscale's Bitcoin spot ETF GBTC continues to face selling pressure. These two major uncertainties are expected to exert significant downward pressure on the Bitcoin market.

This article is not investment advice.

Is the Mt. Gox Claim Beginning to Impact the Market?

According to a tweet by dForce founder Yang Mindao, the latest letter sent by the bankrupt exchange Mt. Gox to users confirms ownership of accounts and indicates that a claims process will begin; it is believed that Mt. Gox's distribution of BTC is expected to occur within the next two months, unlocking around 200,000 BTC into the market.

Based on data from Arkham Intelligence's platform, Mt. Gox currently holds at least 137,000 BTC in its crypto wallets, with a total value of around $5.5 billion. If these funds are unlocked in the short term, it could create selling pressure in the market.

However, Wu said co-founder Colin Wu believes that the liquidation and distribution of Mt. Gox assets is a lengthy process that will not be concentrated in the next two months. Partial payments have already been made since December last year, and many individuals may choose to continue holding. Once the GBTC sells off what it needs to, the panic sentiment will diminish.

Continued Outflow of Assets from GBTC

On the other hand, since transitioning to a Bitcoin spot ETF, Grayscale's GBTC has experienced a total outflow of $3.447 billion due to high fees, market arbitrage settlements, and FTX's restructuring team being authorized to sell debts.

GBTC has seen a recent outflow of $3.447 billion in the past seven days. Source

Currently, GBTC still holds approximately 558,000 BTC, equivalent to around $23 billion. If the current outflow trend persists, it is expected to impact Bitcoin prices until late March.

Continuous selling pressure from GBTC may lead to a downward trend in Bitcoin prices until late March.

Changes in Market Supply Dynamics

Facing the substantial supply from these institutions, which amounts to approximately 700,000 BTC in potential selling pressure, the price in the market may continue to decline in the short term. Additionally, the Bitcoin network's halving event in April will further impact market supply.

The dynamic changes in quantity make the recent Bitcoin market more lively, and short-term price fluctuations are expected to be more unstable.

This article is not investment advice.