FOMC

Bitcoin

Impact

Arkham

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>The recent transfer of $3.1 billion Bitcoin [BTC] from Mt. Gox to BitGo has reduced the defunct exchange’s balance to $3.06 billion.</li> 
 <li>The U.S. government, possessing about $13 billion BTC, is currently the key sell pressure in the market.</li> 
</ul> 
<p> Mt. Gox, a now-defunct exchange, has recently transferred $3.1 billion Bitcoin [BTC] to BitGo. This transaction has further reduced the exchange’s balance, hinting that its supply overhang could soon be over. </p> 
<p>The transfer, which took place on July 30th, has brought the Trustee estate’s balance down to $3.06 billion, according to Arkham data. </p> 
<h2 id="reduced-supply-pressure">Reduced Supply Pressure</h2> 
<p>The significant reduction in the trustee estate holdings implies that the perceived threat from Mt. Gox, akin to the German government pressure, could soon end. </p> 
<p>Interestingly, the recent distribution from the defunct exchange did not exert as much pressure on the market as previously anticipated. </p> 
<p>Data from Glassnode indicates that there were no notable sell-side effects among major exchanges, such as Kraken and Bitstamp, that the trustee estate used for repayments. </p> 
<h2 id="current-sell-pressure">Current Sell Pressure</h2> 
<p>The current key sell pressure comes from the U.S. government, which holds about $13 billion BTC after moving $2 billion BTC last week, causing market unrest. </p> 
<p>Since June, fears of sell-offs from the German and US governments have given bears an upper hand in the market. </p> 
<p>According to CryptoQuant analyst Axel Adler, the selling pressure has bolstered bears throughout the summer, as indicated by the Net Taker Volume. </p> 
<p>At the time of writing, BTC had hit $63.0k and is threatening to weaken further ahead of the U.S. July Jobs reports, due for release on August 2nd. </p> 
<p>It is yet to be seen whether the jobs report will slow down the accelerated sell-off despite the dovish FOMC meeting. </p>

Mt. Gox’s $3B Bitcoin Reduction: Potential Impact on the Crypto Market

Table of Contents

CoinEagle.com

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