Crypto Investors Strike Back at Mt. Gox Bears with a $441M Revenge Influx
Investors in the cryptocurrency market have injected a massive $441 million into digital assets over the past week, taking advantage of the weak Bitcoin price and the activities surrounding the defunct Mt. Gox exchange.
According to a report by CoinShares, this significant influx of funds reflects a strategic response to recent selling pressures in the market.
The report, published on July 8, highlighted that Bitcoin received $398 million in inflows, driven by its price drop and the movements related to Mt. Gox. The United States led the inflows with $384 million, followed by Hong Kong ($32 million), Switzerland ($24 million), and Canada ($12 million). On the other hand, Germany experienced outflows of $23 million.
Bitcoin’s market performance remains volatile. As of the latest data, Bitcoin is trading at $55,956.55, representing a 1.39% decline in the past 24 hours. The cryptocurrency’s market capitalization stands at $1.103 trillion, with a 24-hour trading volume of $35.8 billion, accounting for 69.40% of the total digital asset volume.
The past week saw significant activity from Mt. Gox, the now-defunct Japanese crypto exchange. On July 5, Mt. Gox transferred over 47,000 BTC, worth around $2.7 billion, to an unknown wallet, initiating repayments to its creditors. These repayments, made in Bitcoin and Bitcoin Cash, are part of Mt. Gox’s rehabilitation plan.
Crypto analyst Jacob King believes that most Mt. Gox creditors will sell the Bitcoin they receive, considering its significant value increase of over 8,500% since the exchange’s collapse.
At the same time, the German government moved 3,000 BTC, worth approximately $172 million, to various crypto exchanges and an unknown wallet. This move likely contributed to the increased buying activity as investors saw an opportunity to buy in the market.
While Bitcoin accounted for about 90% of the total inflows, the remaining funds were distributed among a wider range of altcoins. Solana saw over $16 million in inflows, making it the best-performing altcoin with $57 million year-to-date. Ether followed with $10 million in inflows, indicating a shift in investor sentiment.
Despite the positive inflows into digital assets, blockchain equities experienced further outflows. The CoinShares report noted an $8 million outflow from blockchain equities last week, bringing the year-to-date total to $556 million. This trend highlights a divergence in investor sentiment between digital assets and stocks related to blockchain technology.