Analysis: BTC and BCH market recovery may ease Mt.Gox repayment selling pressure
According to a recent market analysis by Kaiko, Mt. Gox transferred 141,000 BTC (approximately $9.2 billion) from its cold wallet to a new wallet last week in preparation for repaying its creditors on October 31. This activity caused selling pressure in the market, with BTC's cumulative trading volume delta being negative $120 million from Wednesday to Friday last week, indicating that there were more sellers than buyers. Since Mt. Gox's first transfer on May 28, trading activity has increased significantly, with selling activity far exceeding buying activity, leading to a significant drop in BTC's CVD. Mt. Gox will repay its creditors in BTC, BCH, and fiat currency. Whether creditors will sell their holdings depends on the market's ability to absorb large orders. Currently, the market depth of BTC and BCH has increased by about 30%, reaching the level before the FTX crash, which may help alleviate potential price fluctuations. However, BCH's liquidity is significantly lower than BTC, with a daily depth of only $9 million, which is only 3.5% of BTC's. The bid-side depth of BCH is only $4.8 million, which means that large-scale sell orders may cause its price to drop by 1%. Compared to September 2021, BCH's market depth is significantly insufficient, and if creditors sell their assets, Mt. Gox's repayment may have a significant impact on BCH.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP and Cardano Survive Due to Early Advantage, Says Mike Novogratz

Ethereum Foundation seeks social media manager amid criticism

Bitcoin’s Next Major Top Projected for February 2026
The Pi Cycle Top Indicator signals a potential Bitcoin peak in February 2026, with a projected price of $258K per BTC.Understanding the Pi Cycle Top IndicatorWhat This Means for Investors

M2 Global Liquidity Rises Again: Will Alts Follow
M2 global liquidity is rising again after peaking in Dec 2024. Will altcoins start catching up soon? Here's what to expect.Altcoins Lag Behind But May Soon Catch UpWhat to Expect Next?

Trending news
MoreCrypto prices
More








