Markets
What happens to the crypto market? ⋆ZyCrypto
Gox, a defunct crypto exchange, was discovered moving US$9.62 billion in Bitcoin in a new wallet. This action raised hopes among its creditors regarding potential repayments.
The transfer saw 141,686 Bitcoins transferred to the “1Jbez” wallet from several cold wallets linked to the exchange. Furthermore, it marks Mt. Gox’s first transfer of funds in more than five years, following its plans to repay creditors by the end of October 2024.
Anndy Lian, blockchain expert and author of “NFT: From Zero to Hero,” noted that this significant transfer likely indicates Mt. Gox’s intention to refund its users. Lian emphasized that this move is also part of the exchange’s strategy to repay creditors by the promised deadline of October 31, 2024.
Meanwhile, Mt. Gox rehabilitation administrator Nobuaki Kobayashi confirmed that consolidation is part of the scholarship’s repayment plans. In a May 28 announcement, Kobayashi stated that the Rehabilitation Administrator is preparing to reimburse the portion of cryptocurrency claims allocated for reimbursement. He also requested that creditors remain patient, suggesting possible delays beyond the initial September 2023 deadline.
For the past ten years, creditors have been waiting for repayment of Mt. Gox’s outstanding debt worth $9.4 billion in BTC. The exchange was once a major cryptocurrency player, facilitating more than 70% of all trades in Bitcoin’s early days. However, Mt. Gox collapsed in 2014 after a series of hacks.
Potential market impact of Mt. Gox Bitcoin transfers analyzed by CryptoQuant
Reacting to the development, on-chain analytics firm CryptoQuant analyzed its potential impact on the crypto market. CryptoQuant reported that the Mount Gox rehabilitation administrator moved 138,000 Bitcoins in seven transactions, ranging between 4,000 and 32,000.
Internal transfers within addresses controlled by administrators did not impact the Bitcoin market. However, the analyst firm noted that the eventual repayment to creditors, expected by October 31, 2024, could influence market dynamics.
Furthermore, CryptoQuant highlighted that the impact on the market will depend on the timing, size and form of these refunds. If the administrator starts repaying creditors, it could introduce a significant amount of Bitcoin into the market, affecting liquidity and price stability. The company concluded that there is no selling pressure of these movements, as transfers have not yet reached the open market.