This defunct cryptocurrency exchange Mt. Gox he’s not done with his yet Bitcoin repayments creditors, as on-chain data shows the exchange recently moved a significant amount of BTC. That raised the question of how much Bitcoin Mt. Gox has left, given negative impact What impact have BTC repayments had on the price of this flagship cryptocurrency so far?
$2 Billion Mt. Gox BTC on the Move
Chain Analytics Platform Arkham Interview revealed on X (formerly Twitter) fasting that a wallet (bc1q26) that received $2.19 billion in bitcoin from Mt. Gox recently initiated test transactions. This development is significant because the wallet that received 33,105 BTC ($2.19 billion) from Mt. Gox is believed to belong to Bitgo, the fifth and final exchange approved by the custodian BTC Repayments.
As such, Bitgo may be preparing to distribute these Bitcoins to creditors. After the test transaction, Bitgo moved $2 billion Mt. Gox BTC to another wallet (bc1qpn5), which may be a precaution before it starts paying creditors. These Bitcoin transfers are also believed to be related to paying creditors, as some users of the Mt. Gox Reddit channel recently requested received BTC in their Bitgo account.
Mt. Gox Bitcoin Repayments began last month, sowing panic across the cryptocurrency market as BTC fell to as low as $54,000. These BTC distributions raised concerns that Mt. Gox creditors could sell their BTC upon receipt, which would put significant selling pressure on the flagship cryptocurrency.
However, the Cryptoquant blockchain analytics platform revealed that these Mt. Gox creditors chose to hold on to, rather than sell, their BTC holdings. Cryptoquant cited an boost in Kraken withdrawals after Mt. Gox’s Bitcoin was repaid through the exchange, suggesting that these creditors were moving their coins to frosty wallets.
This explains why Bitcoin has remained stable despite Mt. Gox’s recent BTC transfers. However, the defunct cryptocurrency exchange still holds 46,164 BTC ($2.81 billion), which could still have a significant impact on the market, depending on whether other creditors decide to hold.
Bitcoin Awaits Critical Inflation Report
Bitcoin continues to trend sideways as traders await July edition Consumer Price Index (CPI) inflation report, which will be published on August 14. A positive inflation reading would strengthen the argument for US Federal Reserve cut interest rates in September, which boosted investor confidence in risk assets like Bitcoin and other cryptocurrencies.
July Producer Price Index (PPI) inflation report, released on August 13, was positive, lower than expected. As such, a positive CPI inflation report could be the confirmation the Fed needs that inflation has indeed slowed and that now is the perfect time to cut interest rates. After Bitcoin crashed on August 5, Bernstein analysts Planned that the price of Bitcoin will rise again when the Fed cuts interest rates.
Featured image created with Dall.E, chart from Tradingview.com
