Bitcoin is shaky on spot rates, looking at the formation in the daily chart. The leg-up to spot rates saw the world’s most valuable coin jump by around 30%, from the pits of $53,500 to around $70,000 over the weekend.
Mt. Gox Overhang Disappears, a Relief for Bitcoin
As prices cool down and quickly get rejected by the crucial round number and around $2,000 from the June 2024 highs, analysts at Glassnode expect think Bitcoin is entering a new era. Citing the recent distribution of BTC by Mt. Gox creditors, Glassnode noted that the “overhang” that has held the industry hostage for about 10 years is diminishing.
After initial fears that the distribution of billions of BTC by Mt. Gox Creditors the market would be destroyed, otherwise proven, prices rose. While there was success, as the market showed how robust it had grown over the years by easily absorbing those coins, it is important to note that this event was a psychological milestone.
Glassnode noted that just over 59,000 BTC had been distributed to hack victims via designated exchanges Kraken and Bitstamp. This batch came from the 141,686 BTC recovered from hackers, with Mt. Gox creditors planning to distribute the remainder in the coming days.
While some are relieved that some of the Mt. Gox haul has been distributed, it remains to be seen how prices will react in the coming sessions. So far, Bitcoin has been range-bound, mostly stuck between $60,000 and the all-time high of around $74,000. One level deeper, there are key resistance levels to watch at $70,000 and $72,000.
If the bulls manage to push prices higher, a break above $72,000 would be crucial. This line represents the resistance of May and June and is the last barrier before the rest of the all-time highs.
The US Government’s BTC Fear
Optimism is high, but prices fell yesterday after the United States moved around $2 billion worth of BTC, according to data from Arkham Intelligence. The on-chain transfer of 30,000 BTC, later split into two batches, sent shockwaves through the BTC market and forced prices down.
While there were initial fears that the government was planning to liquidate them, just hours after Donald Trump promised to keep BTC as a strategic reserve, others are speculating that these coins were moved to a custodian. According to a user on X, the United States Marshals Service recently contracted Coinbase Prime will “protect and trade its portfolio of major digital assets.”
Bitcoin Treasuries Data as of July 30 shows that the United States held over 207,000 BTC. This stash was largely seized from criminals and other lawbreakers. China comes in second, with 194,000 BTC.
Main image from Canva, chart from TradingView