Key Points
- The release of Mt. Gox’s Bitcoin supply could potentially lower Bitcoin’s value, according to QCP Capital.
- The trading activity has shifted to meme coins like Dogecoin, Shiba Inu, and Pepe.
Singapore-based digital asset company, QCP Capital, has released an analysis predicting the future of the crypto market amidst increasing volatility. The firm suggests that the price of Bitcoin (BTC) will be influenced by the release of BTC tied to the now-defunct Mt. Gox exchange, based in Shibuya, Tokyo, Japan.
Mt. Gox, one of the first digital asset trading platforms, collapsed in 2014. The exchange’s users have been waiting for years to recover their funds. According to a recent Bloomberg report, these customers are closer to reclaiming their BTC.
Impact of Mt. Gox’s Bitcoin Supply Release
Mt. Gox has approximately $9.2 billion worth of BTC to return to its former customers by October 31, 2024. The crypto community is curious about the potential impact of this massive amount of Bitcoin entering the market on BTC’s price. QCP Capital suggests that the uncertainty will affect the price of the leading digital asset, potentially benefiting Ethereum upon the launch of the ETH spot ETF.
The Bitcoin community was alarmed when Mt. Gox transferred at least $9.6 billion worth of Bitcoin to an unknown address after five years of inactivity. Former Mt. Gox customers may capitalize on the gains they’ve made over the years on their Bitcoin investments. If a capitalization event begins, the price of Bitcoin is expected to fall.
Shift to Meme Tokens
QCP Capital noted that Bitcoin has retested the $67,000 price level over four times in the past two weeks, indicating a consolidation within the range. Meanwhile, trading activity has shifted to meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).
In the past 30 days, DOGE has increased by 18.0%, SHIB by 16.5%, and PEPE by 105.8%. PEPE has outperformed leading meme tokens and even surpassed some blue-chip tokens like Polygon (MATIC).
Trump-focused meme coins, including Trump (TRUMP), MAGA (TRUMP), and Super Trump (STRUMP), have also provided significant profit to their holders following the vocal backing that former US president Donald Trump gave to the digital asset community. Telegram-related coins, including Notcoin (NOT) and Toncoin (TON), have increased by 121.5% and 24.8% in the past 30 days, respectively.
