Bitcoin’s lukewarm performance could continue into September due to potential selling pressure from both Mt. Gox and the US government, introducing nearly $15 billion worth of Bitcoin into the market. This may increase downward pressure on Bitcoin prices.
The US government currently holds over 203,000 Bitcoin, equivalent to $12.1 billion, whereas the defunct crypto exchange Mt. Gox is expected to release another 46,000 Bitcoin, valued over $2.7 billion. Despite this anticipated release, the repayments are not expected to massively impact the market, according to a recent report from Crypto analytics provider, Kaiko.
Over the past decade, Mt. Gox creditors have been awaiting repayment of over $9.4 billion in Bitcoin which, given the cryptocurrency’s incredible appreciation in value over 8,500%, may likely see investors selling. Strikingly, during the last major distribution of almost $4 billion in BTC in late July, most Mt. Gox creditors refrained from selling.
The net difference between spot-buying and trading volume on centralized exchanges, also known as the Spot Cumulative Volume Delta (CVD), has not seen a significant increase on Kraken following the Mt. Gox BTC distribution.
At the same time, Bitcoin’s price is currently remaining conservative, hovering under the $60,000 mark after suffering a 10.7% drop on the monthly chart. For Bitcoin to close August in a positive way, it would need a monthly closure above $64,300. Analysts anticipate that the scarcity of liquidity, typical of summer, could possibly extend into September. This may make it difficult for Bitcoin to break through the $63,900 resistance level. Historically, Bitcoin’s average September returns since 2013 have been negative, averaging as low as -4.78%.