The price of Bitcoin dropped by 3% on Tuesday after on-chain data showed that the fallen cryptocurrency exchange Mt. Gox started moving BTC in anticipation of potential repayments to creditors.
Following a surge above $65,000, Bitcoin briefly fell below $63,000.
Historical Context of Mt. Gox
Mt. Gox, once the world’s largest Bitcoin exchange, filed for bankruptcy in 2014 after losing hundreds of thousands of BTC in a hack. The exchange began repaying its debts on July 4, raising concerns of massive sell-offs by creditors who have been awaiting repayments for a decade.
Details of Mt. Gox Transfers
According to data tracked by Arkham Intelligence, the wallet associated with Mt. Gox initially transferred 0.021 BTC ($1,000) to the blockchain address 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V. This small move, believed to be a test transfer, was followed by a significant transfer of 44,527 BTC (over $2.8 billion) to an internal wallet.
The internal movements of Mt. Gox in Bitcoin are significant not only for its creditors but also for the entire crypto market. The transfer of large amounts of BTC could indicate potential liquidation, which could exert additional selling pressure on the market. Fears of such massive sell-offs have already begun to influence the prices of Bitcoin and other digital assets.
Kraken Confirms Receipt of BTC and Prepares for Deposits
The crypto exchange Kraken has reportedly confirmed repayments to the creditors, stating that it has received funds from Mt. Gox. The platform is preparing to credit its affected clients within the next 7 to 14 days.
