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Bitcoin Falls Below $63K as Mt. Gox Moves $6B
Bitcoin (BTC) faced fresh turmoil as exchange Mt. Gox began moving $6 billion worth of long-frozen assets, sparking concern and volatility across cryptocurrency markets.
The saga began when blockchain data revealed that Mt. Gox, once the titan of Bitcoin exchanges before its collapse in 2014, had initiated internal transfers. Initially, a modest 0.021 BTC ($1,000) was testedtransferred to address 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V, suggesting larger maneuvers to follow.
Subsequently, a staggering 91,756 BTC ($5.8 billion) was displaced to an internal wallet, marking a significant step in what appears to be a payments strategy.
Observers, including on-chain analysts like Lookonchain, speculate that these moves are part of Mt. Gox’s long-awaited creditor repayment plan. This plan, which was launched on July 4, 2024, after a decade of legal battles and creditor frustrations, raises concerns about potential sell-offs by beneficiaries eager to recoup lost investments.
On July 5th, Bitcoin drops to $53,717the lowest amount since February after Mt. Gox transferred 47,228 BTC worth $2.71 billion.
Bitcoin, the thermometer of the cryptocurrency market, in brief dipped 3%, falling below the $63,000 mark after hitting $65,000 in early Asian trading.
The turbulent history of Mt. Gox serves as a stark reminder of Bitcoin’s evolution and the challenges within the crypto ecosystem. The exchange’s collapse in 2014, following a devastating hack that saw hundreds of thousands of BTC disappear, remains one of the darkest chapters in Bitcoin’s narrative.
Read too: Prepare for 99% of Mt. Gox Creditors’ Bitcoin Liquidation: Analyst