Bitcoin the primary crypto asset dropped below $67,000 following the Onchain activity of defunct crypto exchange Mt. Gox which moved over $2.85 billion worth of BTC assets to a new wallet earlier today.
Mt. Gox has been really busy on-chain as the crypto exchange continues to redeploy BTC assets to its creditors affected by a 2014 hack. The activity is expected to heap selling pressure on Bitcoin given that most of Mt. Gox’s creditors are sitting on 10 years of profit and might like to sell off their assets.
Mt. Gox resumed its redeployment process in early July and since then Bitcoin has surprisingly shrugged off the selling pressure.
Arkham Intelligence shared the news of the movement of funds on its X page while giving an update on the amount of BTC currently held by Mt. Gox
“UPDATE: MT. GOX MOVING $2.85B BTC Mt. Gox moved a total of $2.85B BTC to new wallets this morning in order to distribute 5110 BTC ($340.1M) BTC to 4 separate Bitstamp addresses. Bitstamp is one of the 5 exchanges that the Mt. Gox Trustee is working with to return funds to Mt. Gox creditors. Mt. Gox still holds 85,234 BTC ($5.70B).” Arkham posted
According to Arkham Intelligence Data, Mt. Gox transferred $2.85 billion worth of BTC assets to a new wallet address on Tuesday morning. It now went ahead to send over 5000 BTC assets worth $340 million in today’s price to another wallet and another whooping 37,000 BTC worth $2.5 billion to another new wallet.
Finally, $130 million worth of BTC from the 5000 BTC wallet was transferred to Bitstamp a crypto exchange. This last activity spelled a proposed intention to sell BTC holdings.
The above movement of assets came a day after Mt.Gox transferred small amounts of BTC to Bitstamp in a likely test transaction.
Mt. Gox is expected to redistribute over $9 billion worth of BTC and $73 million of Bitcoin cash (BCH) to traders in the coming months following a 2014 hack that led to a loss of its user’s BTC assets.
The On-chain activity by Mt. Gox created a slightly negative sentiment in the market leading to Bitcoin dropping below $67,000 at the time of the report.
Mt. Gox Creditors likely to Sell off BTC assets
Analysts have predicted that Mt. Gox creditors who will be getting back their Bitcoin Assets after a 10-year gap might be too tempted by the profits accrued over the period to hold the assets.
Bitcoin closed 2014 at $318 and is now worth $66,000 at today’s price. The creditors who have made serious profits over the years might go on a selling spree dumping selling pressure on Bitcoin and beating down its price subsequently.
What to Know
- Gox was created in 2006 by a programmer, Jed McCaleb, as a platform for trading “Magic: The Gathering Online” cards. The Mt. Gox site was repurposed in 2010 to launch a Bitcoin exchange, capitalizing on the growing interest in cryptocurrency. In 2014 the site experienced a serious hack leading to the loss of crypto assets, especially Bitcoin.
- Gox started its Bitcoin redeployment exercise in early July and it’s expected to redistribute over $9 billion worth of BTC assets to creditors.
