Bitrabo Editorial
The now-defunct Mt. Gox exchange continues to make Bitcoin repayments to its creditors, with recent data showing a significant movement of BTC. The question arises about the remaining Bitcoin held by Mt. Gox and the impact of these repayments on the cryptocurrency market.
Recent Activity of Mt. Gox’s $2 Billion BTC
Arkham Intelligence, an on-chain analytics platform, disclosed that a wallet received $2.19 billion in Bitcoin from Mt. Gox and initiated test transactions. This wallet is believed to belong to Bitgo, the exchange approved for handling Mt. Gox’s BTC repayments to creditors. Following test transactions, Bitgo transferred the $2 billion BTC to another wallet, potentially as a security measure before distributing to creditors.
The repayment process started last month, causing concerns in the crypto market as Bitcoin prices dropped. Despite fears of a sell-off by Mt. Gox creditors, data suggests that creditors have opted to hold onto their Bitcoin holdings to maintain market stability.
Bitcoin’s Response to Pending Inflation Report
As Bitcoin trades sideways, investors anticipate the July Consumer Price Index (CPI) inflation report on August 14. A positive CPI reading could prompt the US Federal Reserve to consider rate cuts in September, which may bolster confidence in risk assets like Bitcoin.
Following a positive July Producer Price Index (PPI) report, expectations are high for a favorable CPI report that could influence the Fed’s decision on rate adjustments. Analysts predict that Bitcoin’s price may turn bullish once the Fed implements rate cuts, as seen during previous market movements.