Bitcoin shows signs of recovery as Bitgo begins final distribution of Mt. Gox

• Bitgo Moves $2 Billion From Mt. Gox BTC after performing a test transaction.
• Glassnode data shows that long-term BTC holders are maintaining their holdings as selling pressure has eased.
• Metaplanet announced that it has acquired 57.1 BTC worth $3.3 million.

Bitcoin (BTC) rose more than 3% on Tuesday as investors reacted positively to the latest round of supply pressure Mt. Gox. Meanwhile, Glassnode data reveals that investors have resumed piling up, hoping to see Bitcoin hit higher prices.

Mt. Gox Bitcoin supply pressure is about to end as long-term holders tighten their balances

According to Arkham Intelligence, a wallet connected to the crashed exchange Mt. Gox performed a test transaction. The wallet is said to hold $2.19 billion in BTC and is suspected to be a Bitgo exchange wallet, the final distributor of Mt. Gox.

Hours after the report, Bitgo finally moved $2 billion worth of Mt. Gox Bitcoin as it sought to distribute funds to lenders. This is probably the last round of the refund offer Mt. Gox hitting the stock markets.

The transfer triggered mixed reactions from market participants. While some saw it as a bearish move, others expressed bullish sentiment, speculating that Bitcoin could attempt a move back to the $70,000 area.

The bullish sentiment seems to be slightly prevailing as Bitcoin is up over 3% in the last 24 hours.

The move aligns with a recent weekly report from Glassnode, which revealed that Bitcoin investors are gradually returning to hoarding behavior.

According to Glassnode data, the Accumulation Trend Score (ATS), which measures a weighted change in market balance, hit an all-time high of 1.0, indicating increased accumulation in recent weeks.

The total supply held by long-term holders (LTH) has also increased, with 374K BTC entering LTH status since May. “From this, we can infer that investors’ tendency to hold onto their coins is now a greater force relative to their spending pressures,” Glassnode wrote.

Total supply of Bitcoin held by LTH

Meanwhile, Bitcoin found support around the cost base for active investors during the recent decline, suggesting that investors may still be looking forward to a rally.

LTH’s sell-side risk ratio, which measures the weight of profit and loss realized by investors, also remained at lower levels than previous all-time highs. This suggests that LTHs have seen lower returns this cycle compared to previous cycles. Therefore, one might look forward to BTC making another move towards its all-time high.

“A high percentage of Bitcoin network wealth is held by this cohort of investors compared to the breaks of the previous ATH cycle, suggesting that there is some degree of investor patience and waiting for higher prices. Furthermore, the lack of panic selling among this cohort in place of the biggest price drop of the cycle highlights a resilience in their aggregate conviction,” Glassnode concluded

This attitude may also affect the behavior of institutional investors towards Bitcoin. Japanese investment company Metaplanet recently announced that it has acquired 57.1 Bitcoins worth $3.3 million, bringing it to 303 BTC.

Marathon Digital also disclosed the pricing of its oversubscribed $250 million senior convertible note offering, which it plans to use to acquire more Bitcoin.