As selling pressure cool-off following the complete Bitcoin (BTC) transfer by the Government of Germany and has railed impressively and also hit the $65,000 mark. However, the market on July 16, 2024, once again experienced selling pressure as an on-chain analytic firm Lookonchain revealed that the defunct exchange Mt. Gox began moving Bitcoin (BTC) internally, potentially for repayments to creditors.
Mt. Gox moved 44,527 $BTC(2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment.#MtGox currently holds 138,985 $BTC($8.87B).https://t.co/f2q66eQNuk pic.twitter.com/JlqkZdzkPC
— Lookonchain (@lookonchain) July 16, 2024
Why BTC price is falling?
The leading cryptocurrency by market value dipped 3%, briefly falling below $63,000 after testing the $65,000 mark during the early Asian trading hours, according to coinmarketcap.
The decline followed a small movement of 0.021 BTC (approximately $1,000) from a wallet associated with Mt. Gox to the blockchain address “1EoZd1”. This initial transfer, seemingly a test, was succeeded by a notable movement of 44,527 BTC (about $2.84 billion) to an internal wallet, as per data tracked by Arkham Intelligence.
According to on-chain analyst Lookonchain, these movements are likely part of Mt. Gox’s repayment plan. Once the world’s largest Bitcoin exchange, Mt. Gox went bankrupt in 2014 after losing hundreds of thousands of Bitcoins in a hack. The exchange started repaying its debt on July 4, 2024, raising fears of mass selling by creditors who have awaited reimbursements for a decade.
Does Mt. Gox. BTC transfer impact the overall market?
This recent BTC price drop following Mt. Gox coins transfers has created fear amongst investors and traders. Additionally, it has also affected the broader cryptocurrency market. Ethereum (ETH). Solana (SOL), BNB (BNB), and Toncoin (TON) fall more than 1.5% in the last 4 hours.
The movement of such a significant amount of BTC by Mt. Gox is noteworthy as it signals the beginning of long-awaited repayments to creditors. However, the fear of a potential mass sell-off by these creditors has put downward pressure on Bitcoin’s price. The broader market remains cautious as the situation develops, with investors closely watching for further movements from Mt. Gox wallets and their potential impact on the market.
