The biggest cryptocurrency by market cap, Bitcoin is again facing selling pressure. This comes soon after the news regarding internal movements of coins linked to the defunct exchange Mt. Gox surfaced.
According to on-chain data, the collapsed exchange has started transferring funds, likely to get ready for another round of creditor repayments. This repayment can trigger a potential mass selling by those who have waited nearly a decade for their reimbursements.
The news caused Bitcoin’s price to dip by 3%, briefly falling below $63,000 after it had tested the $65,000 mark during early Asian trading hours.
Internal Movements
The decline in Bitcoin’s value came after a wallet associated with Mt. Gox moved a small amount of 0.021 BTC ($1,000) to the blockchain address: 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V. This minor transaction, presumably a transfer test, was followed by a substantial transfer of 44,527 BTC, valued at around $2.84 billion, to an internal wallet. The data was tracked by Arkham Intelligence, suggesting that these movements are part of a repayment plan.
Background
Mt. Gox was once the largest Bitcoin exchange globally. However, it collapsed in 2014 after a major hack resulted in the loss of hundreds of thousands of BTC. The exchange has been in the process of repaying its creditors since July 4.
Despite this recent setback, Bitcoin has shown a strong performance over the past week. It rose by around 10% from a dip triggered by the first round of Mt. Gox repayments and the German government’s Bitcoin sell-off. Previous round sent the Fear and Greed Index at the 27 level, displaying extreme fear. The leading cryptocurrency reached an all-time high (ATH) of $73,750 in March this year.
Broader Crypto Market
The impact of Bitcoin’s drop was felt across the broader cryptocurrency market. Ether, the second-largest digital asset by market value, declined by over 2.5%, trading around $3,400.
Meanwhile, top altcoins also have recorded red candles on hourly charts. However, memecoins seemed unaffected by this news, with tokens like PEPE and FLOKI surging in double digits.
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