Analysis: BTC and BCH markets recover in depth, or ease Mt. Gox repayment selling pressure

Kaiko's latest market analysis shows that Mt. Gox cold wallets transferred 141,000 BTC (about $9.20 billion) to new wallets last week in preparation for creditor repayment on October 31st. This activity triggered market selling pressure, and the cumulative volume delta of BTC was negative $120 million between last Wednesday and Sunday, indicating that there were more sellers than buyers. After the first Mt. Gox transfer on May 28th, trading activity increased significantly, and selling activity significantly exceeded buying, resulting in a significant decrease in BTC's CVD.
Mt. Gox will repay creditors in BTC, BCH and fiat currencies. Whether or not creditors will sell their positions depends on the market's ability to absorb large orders. Currently, the market depth of BTC and BCH has increased by about 30%, reaching the level before the FTX crash, which may help mitigate potential price volatility. However, BCH is significantly less liquid than BTC, with an average daily depth of only $9 million, which is only 3.5% of BTC. BCH's bid-side depth is only $4.80 million, meaning that large sell orders could cause its price to drop by 1%. BCH's market depth is significantly insufficient compared to September 2021. If creditors sell their assets, Mt. Gox repayment could have a significant impact on BCH.