The defunct crypto exchange Mt. Gox, which once dominated the Bitcoin (BTC) trading market, has caught attention once again after moving a significant portion of its BTC holdings. The latest transactions hint at resumption of repayments to the creditors. Moreover, netizens are concerned about the impact on BTC price once the $2.85 billion Mt. Gox repayments are initiated.
Latest Mt. Gox Bitcoin Movements
According to Arkham Intelligence data, Mt. Gox transferred funds from four of its wallets, receiving $370,000 worth of Bitcoin from Kraken in the process. At present, Mt. Gox still holds 44,899 BTC, valued at approximately $2.85 billion.
Earlier this year, the exchange began repaying its long-suffering customers, with payouts facilitated through platforms like Kraken, Bitbank, BitGo, Bitstamp, and SBI VC Trade. These recent transactions with Kraken suggest that further repayments could be on the horizon.
MT. GOX BTC ON THE MOVE
Mt. Gox emptied 4 of their wallets last night after receiving $370K in BTC from Kraken.
More repayments coming soon?
Mt. Gox currently holds 44,899 BTC ($2.85B). pic.twitter.com/Zh1OKQOygW
— Arkham (@ArkhamIntel) September 25, 2024
The prospect of Mt. Gox releasing more BTC into the market could trigger concerns over price stability. The Bitcoin market is sensitive to large-scale sell-offs, and previous repayments from Mt. Gox in July had a noticeable impact. When the exchange began distributing BTC to its creditors earlier this year, the BTC price fell below $54,000, largely due to increased selling pressure from recipients. Many of these individuals opted to cash out their holdings, creating a wave of sell-offs that placed downward pressure on the market.
However, it’s essential to note that Mt. Gox was not the only factor contributing to the Bitcoin price dip in July. The German government also played a key role, offloading 50,000 BTC over a three-week period, which exacerbated the bearish sentiment in the market.
A More Resilient Market This Time?
Advertisement
While the potential release of additional BTC from Mt. Gox may raise concerns, the current market environment appears more bullish. In fact, some crypto experts believe that the market could absorb the impact of further repayments more effectively this time.
Several macroeconomic factors have contributed to this more optimistic outlook. Last week, the U.S. Federal Reserve cut interest rates by 50 basis points, signaling a more dovish stance in its monetary policy. This decision has been favorable for risk assets like Bitcoin.
Meanwhile, in China, the People’s Bank of China (PBoC) also announced stimulus measures and rate cuts aimed at reviving its struggling economy. Moreover, the trade dynamics between China and Russia have also played a role in boosting Bitcoin price prospects. Hence, the market is speculating on a potential BTC price surge to $100,000.
#Bitcoin whales sold over 20,000 $BTC in the past 24 hours, worth around $1.28 billion! pic.twitter.com/METXwmIxCn
— Ali (@ali_charts) September 25, 2024
Crypto analyst Ali Martinez has highlighted an intriguing trend in recent Bitcoin trading activity. According to Martinez, Bitcoin whales have sold over 20,000 BTC, valued at around $1.28 billion, within the last 24 hours.
Despite this significant sell-off, BTC price has remained resilient, even climbing to $64,000 during the same period. This suggests that the current market has the capacity to withstand substantial selling pressure without experiencing sharp price declines. At the time of writing, Bitcoin price was around $63,861.32, gaining 1.53% on Wednesday, September 25.
Advertisement
Also Read: Bitcoin’s Parabolic Move: Can BTC Reach $120K by Q4 2024?
