Markets
Are Mt. Gox refunds about to crash the market?
- Mt. Gox payment moves 44,527 BTC internally, raising concerns in the market and renewing selling pressure.
- Despite the decline in TVL, Bitcoin remains active with 787,506 addresses, reflecting strong user engagement.
Mt. Gox collapsed in 2014 after a major hack that resulted in the loss of hundreds of thousands of Bitcoin [BTC]. The exchange has already started paying off its debt, initiating a series of transactions.
Meanwhile, this development has raised concerns among market participants about a potential mass sell-off by creditors who have waited nearly a decade for repayments.
Arkham Blockchain Data revealed that Mt. Gox made two significant Bitcoin transactions. The first transfer involved 0.021 BTC, possibly as a test transaction.
Shortly after, a larger movement of 44,527 BTC, valued at approximately $2.84 billion, was recorded. These transactions suggest that the exchange is preparing to distribute funds to creditors.
A related one transfer on July 4th saw a wallet linked to Mt. Gox move 47,000 BTC, valued at around $2.7 billion, to a new wallet.
This was followed by two additional transfers: 1,544 BTC ($84 million) to Bitbank and 1,200 BTC ($64 million) to another wallet. These moves are part of the exchange’s plan to pay off its creditors in phases.
Market Reaction and Bitcoin Price
Following these transfers, Bitcoin faced renewed selling pressure. The price of Bitcoin fell below $63,000 after approaching $65,000 during early Asian trading.
At the time of reporting, the price of Bitcoin was trading at $62,744with a 24-hour trading volume of $40,169,134,704. This marks a 0.14% decline over the past 24 hours, but a 10% increase over the past week.
The wallet linked to Mt. Gox currently holds 138,985 BTC, valued at approximately $8.87 billion. The distribution of 142,000 BTC as part of the payment plan continues to be closely monitored. These internal transfers are seen as steps towards finalizing the payment to creditors.
The moves have sparked considerable interest and speculation within the crypto community. Investors are closely watching how these refunds will affect the broader market, given the substantial amounts involved.
To read Bitcoins [BTC] Price forecast 2024-25
The Total Value Locked (TVL) in Bitcoin reached its highest point in May 2024, exceeding $1.2 billion. However, there has been a decline, taking the TVL to $699.04 million.
Source: DefiLlama
Despite this reduction, Bitcoin remains highly active, with 787,506 active addresses recorded in the last 24 hours. This level of activity indicates continued strong user engagement and interest in Bitcoin.