Mt. Gox, the defunct exchange that famously shut its doors and left creditors in a state of uncertainty, has now made significant progress in refunding the bitcoin owed to those who lost their funds. Approximately 41.5% of the total bitcoin owed has been distributed to creditors, totaling 59,000 bitcoin out of the 140,000. This marks a major milestone in the repayment process.
What is surprising, however, is the low selling activity observed in the market following these repayments. Despite expectations that creditors would immediately sell their assets once they were reimbursed, the opposite seems to be happening. A Glassnode report highlighted that creditors are holding onto their funds, indicating their belief in the potential for further price increases in the future.
One interesting aspect of this repayment process is that creditors have chosen to receive their refunds in bitcoin rather than fiat currency. This decision, which is new in Japanese bankruptcy law, further emphasizes the creditors’ confidence in the future value of bitcoin. It appears that many creditors are actively involved in the Bitcoin space and have adopted a long-term investment strategy rather than seeking to cash out quickly.
The report also noted that the cumulative value data (CVD) of crypto exchanges supports the idea that creditors are holding onto their bitcoin. While there has been a slight increase in the CVD on exchanges, it remains within the typical range for day-to-day trading. This suggests that those who have received bitcoin from the Mt. Gox repayment process are choosing to hold onto it rather than sell.
In conclusion, it seems that the profile of the creditors involved in the Mt. Gox repayment process resembles that of a HODLer or a long-term investor. This stance is expected to reduce the sell-side pressure on the market in the coming weeks. As more creditors continue to receive their share of the refunded bitcoin, the trend of holding rather than selling is likely to persist, potentially impacting the overall market dynamics in a positive way.