The recent repayments initiated by Mt. Gox to creditors affected by the 2014 hack have brought about an interesting revelation in the crypto market. Contrary to initial concerns about a potential market dump, it has been observed that creditors on Kraken have shown a strong “hodling” sentiment. This is evident from the significant increase in BTC withdrawals from the exchange, with more than 5,000 BTC worth approximately $329 million being moved to cold wallets over the past 24 hours.
Despite fears of a sharp drop in prices due to creditors selling off their BTC stash, the market has remained stable. The distribution of Bitcoin and Bitcoin Cash by Kraken has not led to any drastic fluctuations in prices. This stability can be attributed to the responsible behavior of the affected users who are choosing to securely store their Bitcoin rather than immediately selling it off.
The movement of a significant amount of BTC to cold wallets indicates a level of confidence and long-term investment strategies among Mt. Gox creditors. This trend, although relatively modest in volume, sends a positive signal to the market. It reflects the belief of these Bitcoin holders in the future potential of the cryptocurrency and their commitment to holding onto their assets for the long run.
According to CryptoQuant CEO Ki Young Ju, the trading volume on Kraken has not shown any significant spikes following the repayments. This indicates that creditors are not actively engaged in selling off their Bitcoin holdings. The absence of notable increases in spot trading volume dominance or BTC outflows suggests that the market is not being flooded with sell orders, alleviating concerns of a price crash.
The repayments initiated by Mt. Gox have had a more positive impact on the crypto market than initially anticipated. The responsible behavior exhibited by creditors in securely storing their Bitcoin and refraining from immediate selling has contributed to market stability. This trend highlights the confidence and long-term investment outlook of these Bitcoin holders, which bodes well for the overall health of the market.
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