Analyst Ki Young Ju by U.Today

Prominent analyst and founder of the on-chain analytical service Cryptoquant has raised concerns about the potential market impact of Mt. Gox’s selling pressure. The situation could lead to significant selling volume affecting cryptocurrency prices.

Mt. Gox, a well-known exchange that suffered a hack in 2014 resulting in the loss of around 850,000 BTC, has been in the process of compensating victims over the years. Recently, the exchange moved 44,527 Bitcoin, valued at approximately $2.84 billion, to an internal wallet.

Experts speculate that this transfer is part of the preparations for upcoming debt repayments to creditors. Analyst Ki Young Ju emphasized the considerable sell-side liquidity that could flood the market due to these developments. According to data shared by Young Ju, Mt. Gox’s realized capitalization has seen significant fluctuations as the exchange processes these funds.

The influx of Bitcoin could amplify selling pressure and potentially lead to a decline in the cryptocurrency’s price. Bitcoin, which recently rallied and is currently trading at around $65,421, may face headwinds from this new sell-side liquidity, which could interrupt or reverse its positive momentum.

Market reactions to such a substantial influx of Bitcoin remain uncertain, and increased volatility could be expected. Should a large quantity of Bitcoin be released onto the market simultaneously, it may trigger a widespread sell-off, impacting the entire cryptocurrency landscape.