Mount Gox, a bankrupt Bitcoin exchange based in Shibuya, Tokyo, Japan, performed large-scale Bitcoin transfers to several unknown wallets. The move effectively spooked the broader cryptocurrency market, raising concerns about its potential sales pressure.
Mt Gox transfers over $2.9 billion worth of bitcoin
On May 27, the Arkham Intelligence blockchain analytical platform exposed huge Bitcoin transaction initiated by Mt.Gox. The collapsed Bitcoin exchange transferred as much as 42,830 BTC worth $2.9 billion to several unknown wallets, marking the first transfer in five years.
The reason for this move remains unclear, however the transaction follows Mt.Gox’s recent announcement of reorganization plans compensate your creditors and the clients who were his victims hacker attack and bankruptcy in February 2014.
Moreover, these large-scale transactions have worried the cryptocurrency market, with many people speculating about the potential impact on Bitcoin’s value. One crypto member revealed that it may be time to dump BTC, which suggests there could be a potential sell-off significantly impact the market.
WITH Bitcoin is already falling up 4.41% on the week and trading below $70,000 at $67,834, the sell-off could result in further price declines for this cryptocurrency.
Mt.Gox goes on a BTC transfer frenzy
After transferring 42,830 Bitcoins, blockchain tracking and analytics platform Whale Alert revealed that Mount Gox completed a series of transactions on the same day. In just a few hours between each trade, Mt.Gox initiated over five large-scale Bitcoin transfers.
The first two transfers outdoor by Whale Alert involved 3,999 BTC and 8,239 BTC worth approximately $277.6 million and $565 million, respectively. In subsequent transactions, Mt.Gox transferred 14,057 BTC and 16,589 BTC worth approximately $966.3 million and $1.1 billion, respectively.
Mt.Gox’s largest transaction was a staggering 34,138 BTC worth $2.3 billion, sent to an unknown wallet. Bitcoin exchange too transferred another massive 32,137 BTC and 32,499 BTC worth approximately $2.1 billion and $2.2 billion respectively.
In total, Mt.Gox moved over 141,659 BTC worth over $9.6 billion to several unidentified wallet addresses in a single day.
Mike Deutscher, a cryptocurrency analyst and staunch supporter of decentralized finance (DeFi), has recorded that such a significant Bitcoin transaction likely took place create sales pressure in the Bitcoin market. He emphasized that none Fear, uncertainty and doubt (FUD) related to Mt.Gox transfers should be seen as a great opportunity to accumulate more Bitcoin.
Additionally, Deutscher reassured community members, stating that he was not concerned about the possible impact of large-scale Mt.Gox transactions on the market. He pointed to the disclosure of his data by the Bitcoin exchange 200,000 Bitcoin refund plans to creditors from January 2024 as the basis of their trust.
Fellow cryptocurrency member Mark Karpeles also addressed community concerns regarding Bitcoin transfers on Mt.Gox. “As far as I know, everything is fine with MtGox. The custodian is transferring the coins to another wallet in preparation for the distribution, which will likely occur this year; there is no direct sale of bitcoins” – Karpeles he stated.
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