Kraken has successfully completed the distribution of Bitcoin and Bitcoin Cash owed to Mt. Gox creditors, but contrary to widespread fears, there hasn’t been a massive sell-off in the market. This conclusion, announced by Kraken’s CEO Dave Ripley, comes after more than a decade of waiting by the creditors of the now-defunct Japanese exchange.
With the distribution process finalized on July 24, 2024, many were anxious that the influx of Bitcoin could lead to significant selling pressure, potentially driving down Bitcoin’s price. Despite these concerns, recent data suggests that the expected surge in selling has not materialized. Ki Young Ju, the CEO of CryptoQuant, has reported no notable spikes in trading volume or significant Bitcoin outflows from Kraken, signaling that the creditors are not rushing to sell their assets.
The Mt. Gox collapse in 2014 left approximately 127,000 creditors awaiting over $9.4 billion worth of Bitcoin and Bitcoin Cash. Given Bitcoin’s impressive price increase over the past decade, many creditors might have been tempted to sell their holdings. However, it appears that most creditors are holding onto their Bitcoin, possibly due to the asset’s significant appreciation or a strategic decision to wait for potentially higher prices.
Onchain analyst RunnerXBT suggests that the impact of these repayments on Bitcoin’s market might be short-term and that only the so-called “paper hands”—or less committed investors—might engage in selling. This perspective contrasts with other forecasts predicting that a large portion of creditors would sell due to Bitcoin’s price rise.
