Mt.Gox Moves $7B Bitcoin as Part of Repayment Plans, Sparking BTC Price Plunge

Mt. Gox, which was previously the leading bitcoin exchange globally, ceased operations in 2014 following the discovery of a massive hack that resulted in the theft of hundreds of thousands of bitcoins. Since then, creditors have been anxiously waiting for the return of their investments, an event that could potentially increase selling pressure on the bitcoin market.

Over the past fifteen financial occurrences, your digital wallet has been involved in processing transactions with varying values. On May 20th, a probable test transaction amounting to $3 was executed. Additionally, there was a smaller transaction for approximately $160, which took place early on a Tuesday. The remaining dealings encompassed bitcoin transactions valued between one point two million dollars and two point two billion dollars.

As a researcher studying the recent developments at Mt. Gox, I’ve observed an unprecedented transaction: the first transfer of assets from their cold wallets in more than five years. This move is presumably part of a larger strategy to disperse these assets to creditors prior to October 31, 2024.

According to CryptoQuant’s head of research, Julio Moreno, in a recent post, all coins have been moved to the new Bitcoin address “1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6”.

Alex Thorn, the research chief at Galaxy, expressed in a recent post on X that he anticipated the majority of the transferred bitcoins would be kept by the creditors rather than being offered for sale on the public marketplace.

Despite a bullish start to the week, market players seemed to adopt a pessimistic stance towards bitcoin’s price movements. The cryptocurrency dipped by 1.4% since Asian trading hours commenced, reaching a low of $67,680, down from its peak of over $70,000 earlier on Monday.