Bitcoin Recovers as Mt. Gox Begins Final Distribution; Long-Term Holders Tighten Their Grip

Bitcoin rises over 3% as Bitgo initiates the final distribution of Mt. Gox BTC, easing supply pressure. Data from Glassnode shows long-term holders are accumulating, signaling reduced selling pressure and potential for further price recovery

Bitcoin (BTC) has shown signs of recovery, climbing over 3% on Tuesday as the market responded positively to news of the final distribution of Mt. Gox’s Bitcoin holdings. This marks a crucial development in the long-running saga of the collapsed exchange, with Bitgo reportedly moving $2 billion worth of BTC as part of the repayment process to creditors.

The movement of these funds has sparked mixed reactions among investors. While some expressed concern about potential sell-offs, others saw it as a bullish signal, speculating that Bitcoin might make another attempt to break into the $70,000 range. So far, the optimistic sentiment appears to be gaining ground, as Bitcoin continues its upward trajectory.

This positive market response coincides with data from Glassnode, indicating that Bitcoin investors are returning to an accumulation phase. The Accumulation Trend Score (ATS), a metric that tracks weighted balance changes across the market, has reached its highest value of 1.0, suggesting that investors are increasingly holding onto their coins rather than selling.

Long-term holders (LTHs) have also been increasing their balances, with 374,000 BTC entering LTH status since May. Glassnode’s report highlights that this behavior reflects a greater tendency to hold coins rather than spend them, indicating strong confidence among investors.

Moreover, Bitcoin recently found support around the Active Investor Cost Basis, further suggesting that investors are still hopeful for a rally. The LTH sell-side Risk Ratio, which assesses the realized profit and loss among long-term holders, remains low, implying that these investors are waiting for higher prices before selling.

This trend of holding and accumulating appears to be influencing institutional behavior as well. Japanese investment firm Metaplanet recently announced its acquisition of 57.1 Bitcoin worth $3.3 million, bringing its total holdings to 303 BTC. Additionally, Marathon Digital disclosed the pricing of an oversubscribed $250 million senior convertible note offering, which it plans to use for acquiring more Bitcoin.

As the Mt. Gox saga nears its conclusion, and with long-term holders showing resilience, the market appears poised for potential gains in the near future.

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