The cryptocurrency market is abuzz as the total market cap has surged by 4.8% in just 24 hours, reaching a whopping $2.26 trillion! The king of cryptocurrencies, Bitcoin, has surged in price, reaching an impressive $64,961. According to Arkham Intelligence, this surge came after the risk of a Bitcoin crash due to the Mt. Gox redemption was significantly reduced by around 75%.
The collapsed exchange, which began repaying its creditors in July, distributed 109,000 BTC, reducing wallet holdings by less than 25%. The decline suggests that fears of a Bitcoin market crash due to Mt. Gox-related liquidations are now diminishing.
The recent surge was driven by comments from Federal Reserve Chairman Jerome Powell and changes in the U.S. political climate.
I hope this will be a great time to learn more and accumulate more BTC!
Mt. Gox Wallet Holdings Plummet
According to Arkham Intelligence data, BTC peaked in March 2024, when Mt. Gox wallets held around 141.69K BTC, worth over $10 billion. Now, they only hold 32.9K BTC, worth $2.11 billion. The important thing is that creditors have not yet sold their BTC holdings, probably due to the ongoing bull market conditions.
Market sentiment turns bullish
Experts agree that the path to $100,000 for Bitcoin is now clearer, with the US government’s Bitcoin selloff the last major downside risk. Despite the German and US governments’ market selloffs and Mt. Gox’s redemption, crypto bulls have shown resilience. Since July, Mt. Gox has distributed around 110,000 BTC, or $6.6 billion, to bondholders. Considering that Bitcoin’s recent price action has been below $60,000, this is a significant achievement.
Additionally, US spot Bitcoin ETFs also saw net inflows of $252 million on Friday, bringing their weekly total to $506.4 million. This is the seventh consecutive day of inflows into Bitcoin ETFs, supporting predictions of a major BTC rally this year.
Golden Cross: Signal for a Bull Market
In addition to the positive outlook, a “golden cross” pattern is expected soon, with the 50-day moving average crossing above the 200-day moving average, suggesting the potential for a long-term bull market.
Recent events have important implications for both Bitcoin investors and the broader cryptocurrency market, as Mt. Gox’s actions can have a significant impact on market trends and investor sentiment.
Is this the beginning of a new bull market? Let us know your predictions.