Reports indicate that Mt. Gox, a cryptocurrency exchange located in Tokyo, has recently moved 48,641 bitcoins, leading to concerns regarding its potential repayment to creditors.
Ki Young Ju, the CEO of CryptoQuant, has the belief that the fear and uncertainties surrounding the repayment of Bitcoin are overstated. He states that the increase of Bitcoin’s market capitalization is surpassing the growth of its realized capitalization, suggesting a strong demand.
Although $224 billion worth of Bitcoin has been sold since 2023, the value of the asset has soared by 350%. The $3 billion worth of Bitcoin held by Mt. Gox represents only 1% of the total gain in realized capitalization throughout this bullish market cycle, even if it were to be sold on the Kraken exchange.
Ju cautions that Bitcoin is still susceptible to speculative fear, uncertainty, and doubt (FUD). However, those who hold onto Bitcoin for extended periods generally acquire additional Bitcoin throughout these times, indicating a heightened level of confidence in the commodity.
Although there have been substantial Bitcoin transfers as part of the bankruptcy process, just 36% of the platform’s Bitcoin assets have been distributed to creditors.
This scenario highlights the significance of market resilience and the contribution of long-term investors to maintaining market stability. Throughout the reimbursement process, the cryptocurrency community will carefully observe the influence on Bitcoin’s price and general attitude.
Recently, Kraken exchange has obtained money from the Mt. Gox Trustee and intends to disburse it to creditors within a timeframe of 7–14 days.
