Mt. Gox Triggers Bitcoin Sell-Off with Mystery Transfers, Frustrates Creditors with Delays
- Mt. Gox transferred nearly 47,229 BTC ($2.71 billion) to unknown addresses.
- These transfers follow Mt. Gox’s announcement of creditor repayments in July 2024 with BTC and BCH.
- Bitcoin price has dipped below $55,000, potentially due to these movements.
The price of Bitcoin (BTC) plummeted to a four-month low today, dipping below $53,500 on major exchanges like Coinbase. This sharp decline coincides with a series of large, unexplained transfers from the defunct cryptocurrency exchange Mt. Gox, reigniting fears of a potential sell-off by creditors.
Mt. Gox on the Move, Market on Edge
According to blockchain analytics firm Arkham Intelligence, Mt. Gox initiated a string of transactions earlier this week, totaling a staggering 47,229 BTC – roughly $2.71 billion at current market prices.
The recipient of these funds was an anonymous address, raising concerns about Mt. Gox’s intentions. The transferred funds then continued a circuitous path, with further transfers to other unidentified addresses and repayments to a Mt. Gox hot wallet.
Source: Arkham Intelligence
These movements come on the heels of Gox’s announcement regarding the commencement of creditor repayments in July 2024 using Bitcoin and Bitcoin Cash (BCH). The exchange still holds a significant amount of cryptocurrency – an estimated 142,000 BTC and 143,000 BCH – from before its infamous 2014 hack.
Investor Jitters and Unanswered Questions
The large-scale transfers from Gox have spooked investors, who fear that creditors may choose to liquidate their recovered BTC. This potential sell-off could further depress the price of Bitcoin, leading to a wider market correction.
Adding Fuel to the Fire: German Government BTC Transfer
Compounding the negative sentiment, news broke of the German government transferring around 1300 BTC to a cryptocurrency exchange. This adds to the selling pressure on the market, pushing the price of Bitcoin downwards.
Mt. Gox Trust in Question: Frustration Mounts Among Creditors
While Gox initiated some creditor repayments on July 5th, the process appears far from smooth. Their website currently displays a 404 error message, and a user comment highlights the growing frustration among creditors.
Source: X
One user points out that “a while” – a term used by the Mt. Gox trustee regarding further repayments – is a frustratingly vague answer after a ten-year wait.
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