Trend of the Week: Mt. Gox Transfers 📈

🔸Last Tuesday, wallets linked to the defunct crypto exchange Mt. Gox initiated transfers of 140,000 $BTC, valued at around $9.2 billion, as the bankruptcy estate prepares to repay creditors. This unexpected activity from dormant accounts triggered a wave of selling pressure in the market.

🔸A reliable indicator of such selling pressure is the cumulative volume delta (CVD), which for $BTC recorded a total of negative $120M between Sunday and Wednesday. This indicates a higher number of sellers than buyers.

🔸Mt. Gox will repay creditors in $BTC, $BCH, and fiat. The creditor's decision to sell their holdings is uncertain and will likely depend on the market's ability to absorb large orders. Fortunately, the market depth for $BTC and $BCH has improved by roughly 30%, reaching pre-FTX collapse levels, which may help mitigate potential price fluctuations if the sell-off occurs soon.

Source: @KaikoData

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