Mt. Gox Transfers $9 Billion in Bitcoin, BTC Price Drops
The defunct Bitcoin exchange Mt. Gox has initiated the transfer of over 140,000 bitcoins (BTC) worth approximately $9 billion to an unknown address starting early Tuesday morning in Asia. This significant move has sparked concerns about its impact on the BTC market.
Historical Context and Impact
Mt. Gox was once the world’s largest Bitcoin exchange before it shut down in 2014 following a massive hack that resulted in the loss of hundreds of thousands of bitcoins. Since then, creditors have been awaiting repayment of their holdings, which has long been anticipated to increase selling pressure on the Bitcoin market.
Recent Developments
According to data from Bitinfocharts, all of Mt. Gox’s bitcoins have now been moved to a single Bitcoin wallet. This marks the first transfer of assets from Mt. Gox’s cold wallets in over five years and is likely part of a plan to allocate these assets to creditors by October 31, 2024.
Expert Insights
Julio Moreno, Head of Research at CryptoQuant, confirmed in a post on X (formerly Twitter) that all bitcoins have been transferred to a new address:
1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6
Alex Thorn, Head of Research at Galaxy, also commented in a post on X, suggesting that most of the transferred bitcoins will be held by creditors rather than being sold on the open market. This insight could potentially mitigate some concerns about an immediate large-scale sell-off affecting Bitcoin’s price.
Market Reaction
Despite these reassurances, the transfer has already led to a noticeable decline in Bitcoin’s price. The movement of such a large volume of BTC has understandably caused anxiety among investors and market participants, reflecting in the market’s response.
