Mt. Gox, the defunct crypto exchange, has begun moving large amounts of Bitcoin as part of its long-awaited repayment plan. This action, coupled with movements from government-held wallets, has led to a sharp decline in Bitcoin’s price.
Breaking Down the Bitcoin Movements
According to blockchain intelligence firm Arkham, Mt. Gox wallets transferred 47,229 BTC, valued at approximately $2.71 billion, from their cold wallet in the past 8 hours.
UPDATE: Mt. Gox moving $2.71B BTC
In the past 8 hours, Mt. Gox wallets moved 47,229 BTC ($2.71B) from the cold wallet 1HeHL.
2701.8 BTC ($148.4M) was moved out of Mt. Gox wallets with 1544.7 BTC ($84.9M) sent to Bitbank through Gox address 1PKGG, and 1157.1 BTC ($63.6M) sent to… pic.twitter.com/sJEuJB7GwC
— Arkham (@ArkhamIntel) July 5, 2024
Of this amount, 2,701.8 BTC ($148.4 million) was moved out of Mt. Gox wallets, with 1,544.7 BTC ($84.9 million) sent to Bitbank and 1,157.1 BTC ($63.6 million) transferred to an unknown counterparty.
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The Mt. Gox Trustee, Nobuaki Kobayashi, has officially announced the commencement of the repayment plan. Despite these transfers, Mt. Gox wallets still hold a total of 138,985 BTC, valued at $7.52 billion.
Adding to the market pressure, Arkham data reveals that the US government wallet moved 237 BTC, while the German government transferred 500 BTC in the last 24 hours.
The cumulative effect of these large-scale Bitcoin movements has been a major downturn in the cryptocurrency’s price. Bitcoin has plummeted to the $54,000 level, reflecting market anxiety over the Mt. Gox distribution.
While the crypto market started off on a positive note on July 1, the market suddenly reversed course. The FUD created due to the large-scale movement of BTC has triggered panic liquidation. This has caused the overall crypto market cap to plunge by 7% in the last 24 hours
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