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Bitcoin Hits $65K Shaking Off Mt. Gox Payout Worries; XRP Leads Crypto Rally

Jul 16, 2024

As a seasoned crypto investor with over five years of experience in this volatile market, I’ve seen my fair share of price swings and market events that shaped the industry. The recent crypto rebound, led by bitcoin’s surge above $65,000, was a sight to behold after the dip below $63,000 earlier in the day.

Last week’s cryptocurrency market downturn didn’t slow down bitcoin (BTC) as it reached a four-week high price on Tuesday.

As a crypto investor, I’ve witnessed an exciting development with Bitcoin (BTC) surpassing the $65,000 mark for the first time since late June. Despite a brief dip below $63,000 earlier today, this price surge was undeterred by a significant transaction worth approximately $2.8 billion connected to wallets related to the defunct Mt. Gox exchange’s estate. These transactions are believed to be in preparation for distributing assets to creditors in the near future.

The recent surge in cryptocurrencies was extensive, as indicated by the CoinDesk 20 index (CD20), which experienced a close to 3% increase over the last 24 hours. Among the index’s twenty components, sixteen saw growth throughout the day.

As a dedicated researcher exploring the dynamic world of altcoins, I’ve discovered that XRP, the native token of the XRP Ledger payment network, demonstrated exceptional strength during Tuesday’s market. I’m thrilled to report that it surged by an impressive 9%, building upon its already substantial weekly growth which currently stands at a robust 35%.

Large-scale cryptocurrency investors, often referred to as “whales,” are boosting their holdings of the given token, according to Santiment’s analysis. This action suggests they are confident in the price upward trend.

Traditional derivatives exchanges CME and CF Benchmarks unveiling indices and reference rates for XRP could serve as catalysts, potentially increasing institutional investment in XRP according to Brad Garlinghouse, CEO of Ripple, a related blockchain payments company.

Mt. Gox sell pressure “overestimated”

With Germany lagging in Bitcoin sales, crypto investors ponder the potential impact on markets as approximately $9 billion in bitcoin, earmarked for creditors, could be sold to seize the opportunity for gain following a decade-long wait for its price increase.

According to Ki Young Ju, the CEO of crypto analysis firm CryptoQuant, concerns about sell pressure are being exaggerated and won’t cause the ongoing crypto market rally to falter.

He pointed out in a recent post that this distribution is unlikely to halt the ongoing bullish trend since the coins are predicted to mirror bitcoin’s market sentiment. Unlike the German government’s selling, Mt. Gox creditors aren’t compelled to sell their coins, implying that it’s not solely due to sell-side liquidity.

As a crypto and macro analyst with a substantial following, I assessed that the potential price decline for Bitcoin could reach a maximum of 10%, should creditors choose to sell off their recovered assets in large quantities. According to my analysis, this event could trigger such a response from the market.

If Mt. Gox creditors sell their assets in an orderly fashion and extend the process over several weeks, the cryptocurrency market, as per CoinMetrics’ assessment, should be capable of accommodating these transactions, given the current market conditions for bitcoin in terms of depth and trading volumes.

Approximately $1.95 billion worth of around 65,000 BTC could be smoothly incorporated into the market over roughly two weeks if the sell-offs are carried out progressively and spread among various cryptocurrency exchanges, according to CoinMetrics’ analysis in their Tuesday report.

The results we obtained may not fully represent the complexity and development level of the Bitcoin market. Yet, they serve to alleviate concerns about imminent liquidity issues.

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2024-07-17 00:15