TLDR
- Mt. Gox moved approximately $3 billion worth of Bitcoin to unknown wallets.
- The Bitcoin price remained relatively stable despite this large transfer.
- Analysts suggest most Mt. Gox creditors are likely to hold their Bitcoin rather than sell.
- Bitcoin’s price fell below $66,000 following the Mt. Gox transfer and ahead of the Federal Reserve meeting.
- Mt. Gox still holds over $5.2 billion in Bitcoin after these distributions.
The cryptocurrency world saw a significant event this week as Mt. Gox, a defunct Bitcoin exchange, moved approximately $3 billion worth of Bitcoin to unknown wallets.
This large transfer, involving around 47,229 Bitcoin, took place over a three-hour period on July 30. Despite the size of the transfer, the Bitcoin market showed surprising resilience, with prices remaining relatively stable.
Mt. Gox, once the largest Bitcoin exchange before its collapse in 2014, has been gradually returning funds to its creditors. This recent movement of funds is part of that ongoing process.
Mt. Gox moved 47,229 $BTC($3.13B) to 3 unknown wallets again in the past 3 hours!#MtGox has moved 61,559 $BTC($3.89B) to #Bitstamp, #Kraken, #Bitbank, and SBI VC Trade for repayment since July 5.https://t.co/f2q66eQNuk pic.twitter.com/3G1tp47rav
— Lookonchain (@lookonchain) July 31, 2024
Over 41.5% of the total 141,686 Bitcoin owed to creditors has been redistributed since July 5.
The transfer occurred in multiple parts. According to data from Arkham Intelligence, 33,964 Bitcoin were moved to an unidentified address starting with “bc1q26,” while a smaller amount was sent to an address beginning with “1FJxu4.”
These transfers follow a pattern similar to previous allocations to exchanges like Bitbank, Kraken, and Bitstamp, which have been designated to handle Mt. Gox’s creditor repayments.
Market analysts have noted the muted reaction to this large transfer. Ben Simpson, founder of Collective Shift, suggested that many Mt. Gox creditors are long-term Bitcoin believers who are likely to hold onto their recovered assets rather than sell them immediately.
“The Mt. Gox holders are here to HODL,” Simpson stated, using a popular term in the crypto community that means holding onto one’s assets for the long term.
This view is supported by analysis from Glassnode, which pointed out that creditors chose to receive Bitcoin rather than fiat currency, a new option in Japanese bankruptcy law. This choice suggests that many creditors may not be in a rush to sell their recovered Bitcoin.
However, the Bitcoin market did experience some downward pressure following the transfer. The price of Bitcoin fell below $66,000 on Tuesday and reached a low of $65,500 early Wednesday.
This decline may not be solely due to the Mt. Gox transfer, as the market was also anticipating the Federal Reserve’s upcoming decision on interest rates.
The Federal Open Market Committee (FOMC) meeting, which concluded on Wednesday, was expected to maintain current interest rates.
However, there are market expectations of a potential rate cut in September. The relationship between monetary policy and cryptocurrency prices remains a topic of interest for investors and analysts alike.
It’s worth noting that even after these significant distributions, wallets linked to Mt. Gox still hold over $5.2 billion in Bitcoin. This suggests that there may be more large transfers in the future as the process of repaying creditors continues.
