Mt. Gox Bitcoin Distribution Underway After a Decade-Long Legal Battle

After
more
than
a
decade
of
legal
proceedings,
the
long-awaited
distribution
of
Bitcoin
(BTC)
recovered
from
the
Mt.
Gox
exchange
collapse
has
commenced,
according
to

Glassnode
Insights.
This
event
represents
a
significant
milestone
for
creditors
who
have
been
fighting
for
reimbursement
since
the
exchange’s
collapse
in
2013.

Mt.
Gox
Distribution
Arrives

The
total
recovered
coin
volume
stands
at
over
141,686
BTC,
with
just
under
59,000
BTC
already
redistributed
to
creditors.
The
remaining
79,600
BTC
is
expected
to
be
distributed
soon.
Kraken
and





Bitstamp
have
been
designated
as
the
exchanges
responsible
for
this
redistribution,
with
Kraken
receiving
49,000
BTC
and
Bitstamp
10,000
BTC
in
the
first
tranche.

Comparing
the
year-to-date
distribution
size
from
the
Mt.
Gox
estate
to
other
large
entities,
these
distributions
are
already
larger
in
scale
than
ETF
inflows,
issuance
to
miners,
and
sell-offs
by
the
German
government.

Market
Impact
and
Investor
Behavior

From
a
psychological
perspective,
this
distribution
marks
the
final
chapter
in
a
major
market
overhang
that
has
persisted
since
2013.
The
impact
on
the
market
has
been
closely
monitored,
with
the
Bitcoin
price
trading
between
$66,000
and
$68,000
throughout
the
distribution
process.
This
suggests
a
lighter-than-expected
sell-side
pressure
and
a
resilient
demand
profile.

Interestingly,
the
creditors
chose
to
receive
BTC
rather
than
fiat,
a
new
concept
in
Japanese
bankruptcy
law.
Given
the
decade-long
legal
battle,
it
is
assumed
that
many
creditors
remain
active
in
the
Bitcoin
space.
Consequently,
it
is
likely
that
only
a
subset
of
these
distributed
coins
will
be
sold
on
the
market.

HODLing
Trend

The
distribution
pressure
from
long-term
holders
(LTH)
remains
relatively
light
and
is
declining.
Currently,
LTHs
hold
45%
of
the
network
wealth,
a
figure
that
is
relatively
high
compared
to
levels
seen
near
macro
cycle
tops.
This
indicates
that
long-term
holders
are
in
HODL
mode,
waiting
for
higher
prices
to
divest.

The
proportion
of
wealth
held
by
new
investors
is
declining
and
is
well
below
the
levels
typically
seen
at
macro
market
tops.
This
highlights
a
general
shift
back
towards
HODLing
behavior
and
a
slowdown
in
new
demand
since
Bitcoin’s
all-time
high
of
$73,000.

Summary
and
Conclusions

The
Mt.
Gox
distribution
is
a
significant
victory
for
creditors
who
have
fought
for
reimbursement
in
BTC.
Despite
the
potential
for
sell-side
pressure,
the
profile
of
the
creditors
suggests
they
are
more
likely
to
be
long-term
holders.
This,
coupled
with
the
growing
balance
sheet
of
long-term
holders,
indicates
that
HODLing
remains
the
dominant
market
behavior.

Disclaimer:
This
report
does
not
provide
any
investment
advice.
All
data
is
provided
for
information
and
educational
purposes
only.
No
investment
decision
shall
be
based
on
the
information
provided
here
and
you
are
solely
responsible
for
your
own
investment
decisions.

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source:
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