$3 Billion in Mt Gox Payouts Barely Phases Bitcoin
Bitcoin’s (BTC) prospects amid massive Mt. Gox payouts may not be as dire as many analysts suspected, as $3 billion was just transferred with hardly a whisper from the token.
A wallet affiliated with Mt. Gox, the now-defunct cryptocurrency exchange, transferred $3 billion on Tuesday. Bitcoin reacted by dipping just 0.6% over a 24-hour period, which is a major change from how the coin reacted the last time there was a sizable Mt Gox payout. Bitcoin is still in the $66K range, now priced at $66,084 (BTC/USD).
There is no noticeable indication of higher sell pressure from Bitcoin investors, even though that $3 billion was transferred over the space of just three hours. That is excellent news for investors, as it shows that they are not as phased by these large payouts.
What Has Changed about the Market?
But why is there such a discrepancy between the most recent payout and the previous ones that had caused Bitcoin to fall by 3%? That same payout earlier in July caused Ethereum (ETH) to drop by 5% and created a similar ripple throughout the crypto industry.
We may be seeing a pattern of HODL (hold on for dear life) among crypto investors. Those same investors saw what the last payout did, but they also saw that the Mt. Gox payout recipients were not making moves to sell off their coins. As the market pays closer attention to what is actually happening with all of that Bitcoin being transferred, there is less fear around the payouts.
The consensus among industry analysts is that the people who bought those tokens on the Mt. Gox exchange back when that exchange was active are people who firmly believe in Bitcoin as a long-term asset, and they are exhibiting similar behavior now, five and 10 years later.
What this means for the crypto industry is that they may not have as much to fear from major Bitcoin payouts as previously thought. Bitcoin now has a chance to climb and pass $70,000 in the near future and perhaps set a new record high in the coming weeks.
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