Despite worries about a potential sell-off due to the upcoming distribution of Bitcoin from the defunct Mt. Gox exchange, the cryptocurrency market continues its bullish run. CryptoQuant's CEO believes these concerns are overblown, and the market will likely absorb the Mt. Gox Bitcoin release without major problems.
Bitcoin itself reached its highest price in a month, surpassing $65,000 on Tuesday. This upswing happened even after $2.8 billion worth of Bitcoin from Mt. Gox was moved, presumably in preparation for creditor payouts. The broader market also saw a positive trend, with the CoinDesk 20 index gaining nearly 3% in 24 hours.
Leading the charge among altcoins was XRP, which surged 9% on Tuesday and 35% over the week. This rally was fueled by two factors: increased holdings by large investors and the announcement of new indices and reference rates for XRP by CME and CF Benchmarks. These developments could potentially attract more institutional adoption of XRP.
Analysts believe the market can handle a gradual release of the Mt. Gox Bitcoin. CoinMetrics estimates the market can absorb roughly 65,000 BTC (around $1.95 billion) over a few weeks without significant liquidity issues. This highlights the growing depth and maturity of the Bitcoin market.