Bitrabo Editorial
The imminent distribution of Bitcoins by Mt. Gox has been a topic of concern in the cryptocurrency market ever since the approval to repay creditors. The significant amount of BTC held by Mt. Gox is expected to create substantial selling pressure on the cryptocurrency. As the coins begin to move, the crypto market is already reacting though the repayments have not officially commenced.
Transfer of 47,229 BTC by Mt. Gox to Unidentified Wallet
During the early hours of Tuesday, the Mt. Gox Bitcoin wallet conducted a significant transaction, causing a stir within the crypto community. This transaction, reported by the on-chain data tracking site Arkham Intelligence, involved transferring around 47,229 BTC.
Initially, the BTC was sent from a wallet labeled as “Mt. Gox” to the “Mt. Gox: Cold Wallet.” In total, 47,229 BTC was moved to the cold wallet but was then swiftly transferred to another wallet whose details remain undisclosed.
At the time of the transfer, the value of the BTC amounted to about $3 billion, a sizeable sum comparable to the Bitcoin sold by the German government recently, which led to a drop in Bitcoin price and the overall crypto market.
Considering the volume of BTC involved, if these coins were to enter the market, it could potentially result in a similar downturn as observed during Germany’s sell-off. This could push the BTC price back to the $50,000 range once more.
This transaction only represents a portion of the total sum expected to be repaid by Mt. Gox to creditors. The bankrupt exchange had previously transferred 47,000 BTC, which had a minimal impact on the market. Creditors are anticipating around 150,000 BTC worth $9 billion to be returned. An influx of Mt. Gox’s total BTC holdings could trigger a substantial market crash.
Impact on Bitcoin Price
Following Mt. Gox’s Bitcoin transfer, the crypto market experienced a negative response, with prices dropping rapidly. For instance, the BTC price plummeted from above $64,000 to less than $63,000 within an hour, influencing the broader market trend.
Moreover, there was a 44% surge in Bitcoin’s daily trading volume, reaching over $38 billion. This increase implies heightened investor activity, and the declining prices suggest that investors are selling rather than purchasing BTC at the moment.