Bitcoin Exchanges’ BTC Balances Questioned as 140,000 Mt. Gox Coins Prepare for Release
In a recent article on X, well-known commentator Matthew Hyland expressed doubts about the significance of exchanges’ BTC balances as 140,000 Mt. Gox coins are set to be released.
Bitcoin exchange balances have reached their lowest levels in six years, causing some to believe that this indicates a surge in demand. However, not everyone is convinced.
Hyland argues that the relationship between supply fluctuations and BTC price performance is not as strong as many believe. He presented a chart comparing exchange availability to BTC/USD to support his point.
According to data from onchain analytics firm Glassnode, which monitors the balances of 31 major trading platforms, the total number of coins available for purchase as of June 24 is 2,317,495 BTC. This reflects an increase of approximately 18,000 BTC over the past 10 days and marks a multiyear low in aggregate balance. The last time exchanges had such a small amount of BTC available was in March 2018.
The situation may soon change, but there are differing opinions on whether this will be for better or worse.
As previously reported, the bankruptcy proceedings of Mt. Gox, a defunct exchange, are expected to conclude in July. This involves distributing 140,000 BTC worth nearly $9 billion to the users who originally lost them. There is disagreement on whether this will lead to a mass distribution event.
Popular trader Bob Loukas expressed skepticism about the outcome, stating that it “can’t be positive.” However, some believe that the Mt. Gox announcement played a role in the recent drop in BTC/USD prices.
Samson Mow, CEO of Bitcoin adoption firm Jan3, dismissed the idea of a significant dump of BTC from Germany or Mt. Gox, referring to recent movements of confiscated BTC owned by the German government.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.