The defunct cryptocurrency exchange Mt. Gox sent ripples through the crypto market again on Wednesday with a massive on-chain transaction of 13,265 Bitcoins (BTC), valued at roughly $784 million. This follows another significant transfer of $2 billion worth of BTC to BitGo just a week prior.
Data from blockchain analytics firm Arkham Intelligence reveals Mt. Gox split the recent transaction, sending 12,000 BTC ($709 million) to a seemingly new wallet address. The remaining 1,265 BTC (around $74.77 million) was initially transferred to a suspected Mt. Gox cold wallet but later moved to Bitstamp, a prominent cryptocurrency exchange.
Mt. Gox’s ongoing creditor repayment scheme has already seen a substantial disbursement of Bitcoin. Creditors have collectively received $5.77 billion in Bitcoin so far, representing a windfall for many. Some who held $1,000 worth of Bitcoin at the time of Mt. Gox’s collapse could potentially receive over $110,000 today.
However, the Japanese exchange still holds a significant reserve of 46,164 BTC, currently valued at $2.74 billion. Mt. Gox is expected to finalize the creditor repayment process by the end of 2024.
Mt. Gox’s Impact On Bitcoin Price
The Mt. Gox creditor reimbursements have been a major factor contributing to the downward pressure on Bitcoin’s price throughout the summer. However, some analysts believe the recent on-chain activity may not trigger a significant selling spree.
Alex Thorn, head of research at Galaxy Digital, suggests the majority of the transferred funds were likely relocated to a new cold storage wallet, with only 1,265 BTC possibly slated for immediate distribution. Such a small amount is unlikely to cause a major price swing.
Despite the Mt. Gox transfer news, Bitcoin’s price has remained relatively stable, hovering around $59,000. The bigger challenge for Bitcoin bulls is to reclaim the $60,000 mark. Over the past month, its value has been stuck in a fluctuating range between $50,000 and $60,000.
With signs of Bitcoin miner capitulation potentially nearing its end, investors are hopeful for a possible rally following the upcoming halving event. This optimism is bolstered by reports of ongoing accumulation by large Bitcoin holders, known as “whales.” According to Santiment, wallets holding between 100 and 1,000 BTC have collectively acquired nearly 100,000 coins in the past six weeks.
Also Read: Bitcoin (BTC) Volatility Surges 30%, Could Signal Breakout
For Bitcoin to initiate a substantial rally, a sustained breakout above the $60,000 resistance level is crucial. In the immediate future, all eyes will be on the upcoming Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, followed by the address from Jerome Powell, Chairman of the Federal Reserve.
Market analysts are keenly awaiting any hints regarding potential Federal Reserve rate cuts, projected to begin in September. The outcome of these events could significantly influence investor sentiment and Bitcoin’s price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
