Bitcoin (BTC) surged to its highest price in four weeks on Tuesday, surpassing the $65,000 mark for the first time since late June. Earlier in the day, a dip below $63,000 occurred as wallets associated with the Mt. Gox exchange estate moved $2.8 billion worth of BTC, likely in preparation for distributing assets to creditors soon.
The crypto market rally was widespread, exemplified by the CoinDesk 20 index (CD20) rising nearly 3% over the past 24 hours, with 16 out of 20 constituents showing gains during the day.
Among major altcoins, XRP (XRP), the native token of the XRP Ledger payment network, emerged as the strongest performer, climbing 9% on Tuesday and extending its weekly gains to 35%. Whales, or large asset holders, increasing their holdings have supported XRP’s rally, indicating confidence in higher prices, according to crypto data provider Santiment.
Further bolstering XRP’s momentum were announcements from traditional derivatives trading giants CME and CF Benchmarks, introducing indices and reference rates for XRP. These developments are expected to foster institutional adoption of XRP, suggested Brad Garlinghouse, CEO of Ripple, a closely associated blockchain payments firm.
Addressing concerns over potential sell pressure from Mt. Gox creditors, Ki Young Ju, CEO of CryptoQuant, argued that fears may be “overestimated” and unlikely to disrupt the ongoing bullish trend in crypto markets. He noted that unlike the forced sales seen in some government actions, Mt. Gox creditors are not obliged to sell immediately, potentially mitigating sell-side liquidity.
Crypto and macro analyst Alex Krüger estimated that a maximum 10% price drop for bitcoin could occur if creditors were to dump their assets en masse, highlighting the market’s ability to absorb such liquidations if they are gradual and spread across multiple exchanges.
CoinMetrics echoed this sentiment, suggesting that the distribution of approximately 65,000 BTC from Mt. Gox creditors, valued at about $1.95 billion at current prices, could be absorbed without causing significant disruptions. This outlook reflects confidence in the depth and maturity of the current BTC market.
Overall, the latest developments indicate a resilient crypto market poised to handle significant movements in asset distribution while maintaining upward momentum in prices.
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