Mt. Gox distributes 47229 Bitcoins: triggering concerns about Bitcoin market crash!
Early Tuesday morning, a large transaction in the Mt. Gox Bitcoin wallet caused a stir in the entire cryptocurrency community. Arkham Intelligence, a company that specializes in tracking on-chain data, discovered this huge transfer of 47,229 BTC. At first, these Bitcoins flew from a wallet marked "Mt. Gox" to another place called "Mt. Gox: Cold Wallet", but soon transferred to a mysterious wallet.
When this pile of Bitcoins changed hands, it was worth about $3 billion! Speaking of which, the German government recently sold a similar amount of Bitcoin, and the price of Bitcoin fell sharply. Now everyone is worried that if these Bitcoins from Mt. Gox really enter the open market, there may be another big drop, dragging the price of Bitcoin back to a low of around 50,000.
The amount of this transaction is about one-third of the Bitcoin that Mt. Gox intends to return to its creditors. They had moved 47,000 bitcoins before, but the market didn't react much. But the problem is that they still have 150,000 bitcoins in their hands, worth nearly $10 billion, which has a huge potential impact. If Mt. Gox releases all these bitcoins at once, the consequences will be disastrous, and the price of bitcoin is likely to plummet.
As soon as the bitcoins came out of the Mt. Gox wallet, the market immediately panicked. The price fell from more than 65,000 to less than 63,000 in an hour, and the entire cryptocurrency market followed suit. Moreover, the daily trading volume of Bitcoin soared by 44%, exceeding $38 billion, which shows that traders are busy buying and selling, but most of them are in a hurry to sell rather than buy.
Now, everyone is watching Mt. Gox to see how they will distribute these bitcoins next. The market volatility will definitely not be small, and everyone involved will have to be on their toes. As for whether this distribution will stabilize the market or make it more chaotic, it is hard to say now, but people in the financial circle must be mentally prepared, the cryptocurrency world is about to change.
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