Massive Bitcoin Movements Post Mt. Gox: Hold or Sell?

After over a decade of waiting Mt. Gox repayments have begun for over 20,000 customers, stirring mixed emotions among Bitcoin enthusiasts. Some investors feared that the sudden influx of Bitcoin might trigger a selloff, leading to a drop in prices. However, initial observations suggest a different trend. 

CryptoQuant data suggested that over the last 48 hours over 5,000 BTC, valued at approximately $329 US million, has been withdrawn from Kraken. Interestingly, many recipients are transferring their recovered assets to self-custody wallets instead of cashing out immediately, hinting at a preference to hold.

Sharat Chandra, the founder of EmpowerEdge Ventures, noted this behaviour reflects an increased awareness of asset security among users. He highlighted that while some selling pressure is inevitable, the actions of long-term holders who are moving their Bitcoin to cold wallets might help stabilise the market. 

Despite the significant movements of Bitcoin, Chandra believes that the potential for drastic price drops remains low, as many recipients seem intent on holding their coins for the long term.

Related: Mt. Gox Bitcoin Billions Are Being Repaid—How We Got Here

The Bitcoin market is finding a strong support zone between $63,000 and $65,000 USD, noting that the market quickly recovered even after substantial selloffs, such as the German government’s recent sale of nearly $3 billion worth of Bitcoin. 

Experts like Eneko Knörr, CEO of Stabolut also chimed in to say he believes that the staggered nature of the Mt. Gox repayments will further cushion the impact, allowing the market to absorb the influx without major disruptions. As the market adapts, the upcoming Bitcoin halving event and ongoing accumulation by long-term holders could set the stage for future price appreciation.

Are Aussies the biggest Degens?

Aussie! Aussie! Aussie! Degens! Degens! Degens!

Australians have become key players in the memecoin scene, as highlighted in a new report from crypto exchange Kraken. 

This trend sees Aussies gravitating towards newer, niche tokens like PEPE, DogWifHat (WIF), and BONK, diverging from global favourites like DOGE and SHIB. The report also reveals a strong preference for Ethereum (ETH) among Australian crypto investors, who allocate nearly half of their portfolios to this asset. 

This ETH dominance is notably higher than the global average, suggesting a unique investment strategy in the region.

As predicted, Bitcoin remains the most traded cryptocurrency in Australia, reflecting its enduring appeal as a foundational digital asset. However, Solana’s rising popularity marks an interesting shift, possibly due to its lower fees and faster transaction times compared to Bitcoin and Ethereum.

The broader trend of memecoin adoption in Australia aligns with a global surge in interest in these tokens, often driven by internet culture and celebrity endorsements. Memecoins, while often seen as high-risk investments due to their volatility, have gained a substantial following, particularly among younger investors looking for quick gains.

In addition to Kraken’s findings, other recent studies have highlighted the growing interest in decentralised finance (DeFi) platforms in Australia, with more users exploring staking, lending, and yield farming opportunities. This diversification indicates a more risk-on approach to cryptocurrency investment strategies in the country, moving beyond simple buy-and-hold strategies of ‘blue-chip’ coins.

It’s no surprise that we have seen the increase in such strategies with the increased cost of living in Australia.

This mix suggests a dynamic and evolving landscape, where investors are both chasing trends and seeking stability.

Related: ETH Dips as Analysts Predict More Trouble Ahead Post ETF Launch

VanEck’s Bold Bitcoin Prediction: $61 Trillion Market Cap by 2050. Time to HODL Until Retirement?

The public announcement about VanEck’s future prediction was made during the “Bitcoin Conference”.  VanEck has rolled out a report that’s bound to raise a few eyebrows. According to their crystal ball, Bitcoin might just be on a rocket ride to a $61 trillion market cap by 2050. (The current market cap of Bitcoin is $1.29T).  

In addition to VanEcks bold predictions for BTC which is helping the current price rise back to all time highs, Trump Will Headline Bitcoin 2024 Conference – His Latest ‘Crypto President’ Rebrand Effort. This move will surely convince all the crypto holders that we have a pro-crypto president coming into power which in-turn will push the prices even higher if selected. 

In light of all the positive news coming out of the Bitcoin Conference, Bitcoin seems to be making a bullish move to end this week. It has been trading within a downward parallel channel since March of this year with no drastic moves to date, but it’s now attempting a breakout from its current level. 

We’ve noticed a mini breakout and a subsequent retest of the channel, as shown in the chart below. This retest is crucial because it helps confirm the validity of the breakout; it’s a sign that previous resistance might now act as support. 

Based on our analysis, we’re targeting a move back to $70,000. This target could be reached soon if we continue to see bullish momentum and strong data/information supporting the trend.