Mt. Gox Has Returned Over 40% of the Bitcoin It Owes. Selling Activity Is Yet to Rise

Mt. Gox has refunded about 41.5% of the bitcoin it owed to creditors who lost their funds. However, selling activity in the market remains minimal. That has taken the entire community by surprise. With the repayments occurring over a year after the defunct exchange shut its doors for good, creditors were expected to sell their assets once they received them. BTC has since seen an 8,500% increase in its price.

A Glassnode report showed how creditors are holding the funds reimbursed by Mt. Gox, depicting their belief in the asset’s price rising even further. 59,000 bitcoin out of the total 140,000 have been distributed to creditors, with Kraken routing these funds to their destinations. Bitstamp is in the process of doing so.

The report read, “Creditors opted to receive BTC, rather than fiat, which was new in Japanese bankruptcy law.” Their inclination to claim their repayments in BTC indicates they do not want to offload their assets as soon as they receive them.

It added, “Given the extensive time-span between Mt.Gox collapsing, and today, it is likely many creditors (who didn’t sell their claims) remain somewhat active in the Bitcoin space.” As holding remains the strategy for most exposed to bitcoin, those receiving their share from the Mt. Gox repayment process will continue to hold.

Holding activity by creditors is further proven by the cumulative value data (CVD) of crypto exchanges. CVD is the net difference between buying and selling trade volumes on CEXs. While the CVD on exchanges has seen a slight increase, it remains within the day-to-day range, indicating those receiving BTC are holding it.

The report concluded by mentioning, “the profile of the creditors appears to represent one of a HODLer or long-term investor, potentially dampening the magnitude of sell-side pressure across the coming weeks.”

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