Key Points
- The recent transfer of $3.1 billion Bitcoin [BTC] from Mt. Gox to BitGo has reduced the defunct exchange’s balance to $3.06 billion.
- The U.S. government, possessing about $13 billion BTC, is currently the key sell pressure in the market.
Mt. Gox, a now-defunct exchange, has recently transferred $3.1 billion Bitcoin [BTC] to BitGo. This transaction has further reduced the exchange’s balance, hinting that its supply overhang could soon be over.
The transfer, which took place on July 30th, has brought the Trustee estate’s balance down to $3.06 billion, according to Arkham data.
Reduced Supply Pressure
The significant reduction in the trustee estate holdings implies that the perceived threat from Mt. Gox, akin to the German government pressure, could soon end.
Interestingly, the recent distribution from the defunct exchange did not exert as much pressure on the market as previously anticipated.
Data from Glassnode indicates that there were no notable sell-side effects among major exchanges, such as Kraken and Bitstamp, that the trustee estate used for repayments.
Current Sell Pressure
The current key sell pressure comes from the U.S. government, which holds about $13 billion BTC after moving $2 billion BTC last week, causing market unrest.
Since June, fears of sell-offs from the German and US governments have given bears an upper hand in the market.
According to CryptoQuant analyst Axel Adler, the selling pressure has bolstered bears throughout the summer, as indicated by the Net Taker Volume.
At the time of writing, BTC had hit $63.0k and is threatening to weaken further ahead of the U.S. July Jobs reports, due for release on August 2nd.
It is yet to be seen whether the jobs report will slow down the accelerated sell-off despite the dovish FOMC meeting.
