As reported by Cointelegraph, Crypto exchange Kraken has confirmed the completion of the distribution of Bitcoin owed to Mt. Gox creditors, CEO Dave Ripey announced. "Krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the Mt. Gox estate back to creditors," he stated in a July 24th X post.
Concerns were widespread among crypto investors regarding the potential selling pressure on Bitcoin, with over $9.4 billion worth of Bitcoin owed to approximately 127,000 Mt. Gox creditors who have been awaiting fund recovery for over a decade.
Despite the substantial increase in Bitcoin's value since the exchange's collapse, Kraken's trading volume suggests that creditors aren't offloading their Bitcoin, as noted by Ki Young Ju, founder and CEO of CryptoQuant. Ju stated in a July 24th X post that there had been no significant spike in trading volume or Bitcoin outflows on Kraken following the repayments, which he regarded as a "positive sign so far," albeit cautioning about potential sell pressure from Asia.
According to popular onchain analyst RunnerXBT, the Mt. Gox repayments will likely only cause short-term Bitcoin volatility, affecting "paper hands," a term used in the crypto community to refer to holders with the least conviction.
This perspective conflicts with that of financial analyst Jacob King, who anticipated that a significant percentage of Mt. Gox creditors could be inclined to sell their Bitcoin due to its substantial price appreciation.
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