The US government and Mt. Gox have threatened to add about $15 billion worth of further selling pressure, so the current bitcoin crabwalk may last until September.
September may see further selling pressure on Bitcoin from Mt. Gox and the US government, which may add about $15 billion to the market’s lethargic momentum.
Bitcoin BTC $59,228 worth of more than $14.8 billion may soon flood the market, further pressuring prices lower.
Approximately 203,000 BTC worth $12.1 billion are held by the US government, while another 46,000 BTC worth around $2.7 billion are scheduled to be distributed by the now-defunct cryptocurrency exchange Mt. Gox.
The $2.7 billion will be distributed by Mt. Gox on Kraken before the end of 2024, but the refunds are not expected to have a big effect on the market, according to a research published on August 29 by crypto analytics company Kaiko:
With just a slight uptick in slippage at the United States market close, Kraken has managed BTC ETF flows. According to its liquidity profile, any further selling pressure brought on by the Mt. Gox repayments are unlikely to result in structural problems that could have an impact on the market as a whole.
For the past ten years, creditors of Mt. Gox has been waiting to get above $9.4 billion worth of BTC. Since then, the value of Bitcoin has increased by over 8,500%, which means that many investors will probably try to sell.
Credits of Mt. Gox have not liquidated during the most recent significant $4 billion allocation
The value of Bitcoin has increased significantly, but Mt. Gox creditors weren’t selling.
By the last of July, creditors of Mt. Gox had collected around $4 billion in Bitcoin, or 41.5% of the total amount due to consumers.
However, the majority of Mt. Gox creditors decided not to sell, per a Glassnode article from July 29.
The choice made by creditors to accept Bitcoin instead of currency was novel under Japanese bankruptcy law. Because of this, it is quite possible that just a portion of these dispersed coins will really be put up for sale.
Notably, following the Mt. Gox BTC distribution, Karken has not experienced a discernible increase in the spot cumulative volume delta (CVD), an index that measures the total difference between spot purchasing and selling volume of trade on controlled exchanges.
The cost of BTC is still under $60,000
As for the price of Bitcoin, it has dropped more than 10.7% on the weekly graph but is still relatively low, below the psychological $60,000 barrier.
For Bitcoin to end August positively, its monthly closing must remain over $64,300.
Bitfinex analysts told Cointelegraph that they were concerned that the summer’s lack of liquidity would persist into the month of September, making it challenging for Bitcoin to break beyond the $63,900 barrier.
We need to examine the details because value is an outcome of past market transactions. As the price increased to the realized price for short-term holders, which is currently at $63,900, we also witnessed some profit-seeking from the STH cohort.
According to the researchers, Bitcoin’s average returns for September were negative, coming in at -4.78% since 2013.
Weekly volumes swing positive as Bitcoin Runes tallies 15.6 million NFT transactions: Nifty Newsletter
In just four months, Bitcoin Runes has tracked 15.6 million transactions and produced $162.4 million in fees.
This week’s email covers the following topics: the Runes protocol on BTC has produced $162.4 million in fees in just four months; the NFTs system Magic Eden is establishing a private token to expand its business; and learn what Web3 pros think about the current sale of the most valuable CryptoPunk. Weekly volumes of NFT have started to increase, in other news.
In just four months, 15.6 million NFT transactions are recorded on Bitcoin Runes
Having around 15.6 million transactions, the top NFT protocol, Bitcoin Runes, produced $162.4 million in fees, indicating potential long-term market effect.
In just four months, Runes, an NFT system on Bitcoin, processed about 15.6 million transactions and brought in $162.4 million in fees. According to Dune Analytics data, during the initial two months of the protocol, daily transactions frequently surpassed 300,000.
As of April 23, investors have made over a million transactions through minting, etching, transfers, and edicts, accounting for 81.3% of all Bitcoin network capacity.
In just four months after its April launch, the non-fungible token protocol known as Bitcoin Runes produced $162.4 million in charges from 15.6 million transactions.
A significant number of transactions were recorded by Runes in the first two months, frequently surpassing 300,000 transactions daily, according to Dune Analytics. More than a million transactions involving minting, etching, transfers, and edicts were made by NFT investors on April 23 alone. These transactions accounted for 81.3% of the whole bandwidth used by the Bitcoin network.
The average number of Runes transactions each day, on the other hand, decreased during the previous two months to about 50,000.
After its launch, the Runes protocol dominated daily transactions, but it is currently experiencing a fall as Bitcoin has regained its supremacy in the network.
Roughly 90% of network activity has been accounted for by Bitcoin BTC $59,228 since July 16.
The increase in inscriptions of Bitcoin
Many investors now prefer the Runes protocol over BRC-20, which was once presented as an effective replacement for Bitcoin Ordinals.
Over the past four months, Runes has, on most days, surpassed BRC-20 with respect of overall transaction share. The graphic below illustrates how BRC-20 performed better than Runes on just 13 days.
Mints account for over nine million of the 15.6 million total Runes transactions, whilst edicts & etching account for approximately 6.5 million and 91,500 interactions, accordingly.
See the Cointelegraph guide for more information about Bitcoin Runes.
The potential market for Bitcoin Runes
A few months after Runes’ introduction, according to pseudonymous decentralized finance researcher Ignas, the genuine market opportunity may present itself. According to him, holders of Runestone, RSIC, and PUPS are currently anticipating exciting fresh airdrops of Rune tokens. And the FOMO threads never stop. But the market may quickly calm off, similar to the NFT craze following the JPEG revelation.
Additionally, Stacks, the Bitcoin layer-2 network, is getting ready to introduce a trading option for inscriptions on Runes, BRC-20s, and Ordinals.
A $13.5 million withdrawal from BlackRock’s Bitcoin ETF is the second-ever
Bitcoin’s price fell below $59,000 on the second day of outflows from BlackRock’s Bitcoin ETF.
August 29 saw a $13.5 million total outflow from BlackRock’s ETF, which is the second since May 1’s $36.9 million net outflow. This was also the worst combined outflow day ever for the Bitcoin BTC $59,226 ETFs, at $563.7 million, according to data from Farside Investors.
Together, the 11 spot Bitcoin ETFs with US bases had net withdrawals of $71.8 million on August 29.
IBIT’s net outflow day occurs after it reported net inflows of $224.1 million on August 26. These inflows are the highest since $526.7 million on July 22.
The most recent withdrawals from Bitcoin ETFs coincide with a wider decline in the cryptocurrency’s value, which as of this writing was trading at $58,751, down about 3.43% over the previous seven days, according to CoinMarketCap.
On August 29, slight combined withdrawals of $1.7 million were observed in United States based spot Ether Ethereum $2,525 ETFs, with some of the funds experiencing no inflows.
The only ETF to record a net inflow was the Grayscale Ethereum Mini Trust (ETH), which came in at $3.6 million, but it was unable to stop the $5.3 million in net outflows from its sister trust, the Grayscale Ethereum Trust (ETHE), which has higher fees.
According to CoinMarketCap, the cost of Ether has also been declining, falling 5.64% over the past seven days to $2,517.06.
