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The bankrupt crypto exchange Mt. Gox is set to release 140,000 Bitcoin, causing many analysts to doubt the Bitcoin balances held by exchanges. Popular commentator and analyst Matthew Hyland described the decreasing exchange supply as exaggerated in a post on June 24.
What Is Happening on the Bitcoin Front?
The total Bitcoin balances of crypto exchanges are at their lowest levels in years, traditionally seen as proof of increased demand, but not everyone is convinced. For Hyland, the correlation between supply changes and Bitcoin price performance leaves much to be desired. Along with a chart comparing exchange availability to BTC/USD, the famous figure shared the following statements:
“IMO, the supply side is overly exaggerated. Bitcoin on exchanges has fallen throughout the bear market, and Bitcoin’s price has continued to fall. In the long run, this step is important, but it hasn’t shown to be so over a few years.”
Data from on-chain analysis firm Glassnode, which tracks the balances of 31 major trading platforms, shows that as of June 24, the total amount of Bitcoin currently available for purchase is 2,317,495. This marks an increase of approximately 18,000 Bitcoin over the past 10 days, indicating that the total balance is low in recent years. The last time a similarly low amount of Bitcoin was available on exchanges was in March 2018.
What Are the Details on the Subject?
The picture may soon change, but consensus may be lacking for better or worse. As reported, the bankruptcy proceedings of the bankrupt crypto exchange Mt. Gox, which includes 140,000 Bitcoin worth approximately $9 billion, will conclude in July. This process will involve sending the funds to the users who initially lost them, and opinions remain divided on whether this will result in a mass distribution event.
Some believe that the Mt. Gox announcement played a role in the BTC/USD pair hitting its lowest levels in nearly two months on June 24, but this is also contentious. Samson Mow, CEO of Bitcoin investment firm Jan3, referred to the recent movements of seized Bitcoin held by the German government, stating that there has been no significant selling pressure from Germany or Gox and shared the following statements:
“The current drop in Bitcoin is not due to large asset sales but entirely due to sentiment and fear. Even if there is a sale when Gox assets hit the market, it will likely be through OTC, having minimal impact on price.”
