The collapsed Japanese crypto exchange Mt. Gox made headlines again as it transferred 47,229 Bitcoin, worth $2.71 billion at current prices, to a new wallet address. The major transfer, executed at 12:30 am UTC on July 5, has been the first major move from the exchange since May. It was noted by blockchain analytics platform Arkham Intelligence and involved Bitcoin stored in “cold storage.”
In recent months, Mt. Gox has conducted several smaller test transactions. The latest movement aligns with the exchange’s scheduled plan to start repaying creditors this month, with a total of $8.5 billion worth of BTC to be distributed. On the same day, Mt. Gox also moved 1,545 BTC to the hot wallet of Bitbank, a crypto exchange involved in the repayment process.
According to a statement from Mt. Gox trustee Nobuaki Kobayashi on June 24, all necessary steps to begin repayments in July have been completed. Despite these preparations, market commentators have expressed concerns over the potential impact of such a large volume of BTC entering the market. They fear that creditors selling their holdings, which have been inaccessible for over a decade, could lead to a significant sell-off.
However, some analysts believe the actual amount of BTC likely to be sold is closer to $4.5 billion. Galaxy Digital’s head of research, Alex Thorn, suggested that many Mt. Gox Bitcoin holders might be more inclined to hold onto their assets, partly due to the potential adverse impact of capital gains taxes if they sell all at once.
Impact on Bitcoin’s Price
On May 28, Mt. Gox transferred nearly $7.3 billion worth of Bitcoin to an unknown wallet, causing the price of Bitcoin. The exchange holds substantial amounts of Bitcoin (142,000 BTC), Bitcoin Cash (143,000 BCH), and other assets totaling 69 billion yen.
The leading cryptocurrency continues its downturn, slipping below the $54,000 price mark today. According to CoinMarketcap, it’s trading around $54,143.54, down by close to 9% in the last 24 hours and approximately 13% in a week. The price is now at its minimum level in five months.
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