Bitcoin Falls to $62K as Mt. Gox Transfers Over $6 Billion in Bitcoin, Signaling Major Repayment Activity
Mt. Gox just moved approximately $6 billion worth of Bitcoin to two different wallets within the past two hours, according to data on Arkham Intelligence. This transfer, involving 48,641 BTC and 47,229 BTC, marks the first major activity from Mt. Gox's cold wallet in two weeks and is likely connected to the ongoing repayment process for its creditors.
Source: Arkham Intelligence
While the $6 billion transfer seems substantial, it's worth noting that it represents only about 0.45% of Bitcoin's maximum supply of 21 million coins.
This puts the scale of the transfer into perspective, potentially allaying fears of significant market disruption.
The movement comes as part of Mt. Gox's rehabilitation plan, which was put into place earlier this month. The exchange, which collapsed in 2014 following a massive hack, has been working to reimburse its affected users for nearly a decade.
According to blockchain intelligence firm Arkham Intelligence, Mt. Gox still holds around 138,985 BTC in its main wallet, valued at approximately $8.75 billion.
Source: Arkham Intelligence
Interestingly, this remaining holding accounts for about 0.66% of Bitcoin's max supply, illustrating that even after the transfer, Mt. Gox's influence on the overall Bitcoin ecosystem remains relatively limited.
This latest transfer is part of a larger distribution plan scheduled to run from July 1 to October 31, 2024. The repayment process includes not only Bitcoin but also Bitcoin Cash (BCH).
JPMorgan analysts previously predicted that some Mt. Gox customers might sell a portion of their recovered Bitcoin to lock in profits, potentially putting downward pressure on prices in the short term. However, they also suggested that the market could start rebounding from August onward.
