Bitcoin exchange inflows, defined as the total amount of Bitcoin delivered to exchanges, have declined sharply since early August, notwithstanding transfers from the Mt. Gox bankruptcy estate and concerns of a US government sell-off.
Bitcoin Exchange Inflows Dynamics
According to CryptoQuant, almost 94,000 Bitcoin were delivered to exchanges on August 4, followed by about 49,000 Bitcoin on August 5, and about 51,000 Bitcoin sent to exchange wallets on August 6. The other days of the month saw a decline in exchange inflows; the most current data, from August 20, shows 31,000 BTC transferred to exchanges, suggesting less selling pressure in the market.
Sell-off Speculation
Moreover, for the first transaction in over three weeks, the now-defunct Mt. Gox exchange sent 12,000 BTC, worth almost $709 million, to wallets that remain unknown as of August 20. Arkham Intelligence reports that 44,899 BTC, or over $2.7 billion, are still held in wallets linked to the Mt. Gox exchange.
Expert Commentary
For weeks, experts have argued about the possible effects of the Mt. Gox distribution. According to recent statistics, creditors of Mt. Gox are still holding on to their Bitcoin and have not sold off a large amount of it. Furthermore, after the US government sent 10,000 Bitcoin to an anonymous wallet address on August 14, speculation about a possible sale by the government started circulating. Several experts have pointed out that the move may not necessarily mean that the Bitcoin is going anywhere; it could be related to custody issues.
In conclusion, despite various speculations and significant transaction volumes, the selling pressure in the Bitcoin market remains low, as confirmed by the declining exchange inflows.
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