Bitcoin dips as Mt. Gox moves $8.6 billion ahead of looming payouts to creditors

Jul 16, 2024 - 13:23 Updated: Jul 16, 2024 - 14:24

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Bitcoin dips as Mt. Gox moves $8.6 billion ahead of looming payouts to creditors

Bitcoin, the primary crypto asset that has until recently rebounded from the selling pressure heaped on it by the activities of the German government has currently dipped following another Crypto whale activity. 

The crypto asset which hit a week high of $65,000 has currently dipped to $63,325 following a transfer of over $5.8 billion BTC by Mt. Gox to unknown wallets on Tuesday. 

The crypto industry has anticipated the looming redistribution or payouts of over $9 billion worth of Bitcoin assets to creditors by the now-defunct Mt. Gox crypto exchange. 

The fears of the crypto industry and investors started on Tuesday when Mt. Gox moved huge amounts of BTC to an unknown wallet spelling preparation for its repayment process which is expected to happen soon. 

Arkham intelligence data showed that a Bitcoin wallet known to be associated with Mt.Gox at 6.49 Am UTC transferred nearly 42,588 BTC worth $2.7 billion to an unknown wallet with the name “18vjn, 

Before this transaction, Mt. Gox transferred a paltry 0.021 BTC worth $1,320 to an unknown address in what is presumed to be a test transaction. 

At 6:39 a.m. UTC Mt. Gox made another transaction moving over $44,000 BTC worth $2.8 billion to its cold wallet. 

Finally, at about 8:12 am UTC, Mt. Gox made another heavy transaction transferring over 48,641 BTC ($3.1 billion) to the unlabeled address “3JQie.”

The on-chain activity by Mt. Gox reveals preparation for its much-anticipated re-distribution of Bitcoin assets to creditors. The activity is expected to continue from where the German government stopped in heaping selling pressure on Bitcoin. 

Bitcoin dips in response 

Bitcoin recently hit a week high of $65,000 following a dreadful 2 weeks of dips due to the German government dumping its bitcoin assets. The primary asset dipped slightly after the movement of $8.6 billion worth of Bitcoin by Mt. Gox. 

The asset dipped from $65,000 to $63,325 at the time of writing this report. Despite the dip, Bitcoin has still not lost the momentum it gained following the end of the dumping process by the German government. 

According to CoinGecko data, Bitcoin is still 9.9% up from its previous price in the last 7 days. 

What to Know 

Mt. Gox was the world’s biggest crypto exchange as of 2013 and was handling about 70% of the world’s Bitcoin transactions. The Crypto exchange witnessed serious hacks which resulted to the theft of over 950,000 BTC.

Mt. Gox which filed for bankruptcy in 2014 is finally ready to repay its users their lost tokens after 10 years. Analysts expect these users who are sitting on a 10-year profit to sell their assets leading to serious selling pressure in the market.