In recent hours, several Mt.Gox wallets were involved in pending pre-payment transactions worth $9 billion worth of Bitcoin (BTC) and Bitcoin Cash (BCH). These transactions were reported by Arkham Intelligence. That identified activity in three wallets linked to the now-defunct trading platform. Mt Gox's "doomsday" is approaching this month and could lead to a further collapse in the Bitcoin price, as the Bitcoin price collapse extended to $57,000 today.
The Mt.Gox platform activates wallets in preparation for payment
The largest recent transactions involved just $24 worth of Bitcoin. Historically, big moves of Mt.Gox funds have involved consolidations into a few major portfolios. In this case, a wallet that previously held $24 worth of Bitcoin acted as an intermediary. By redirecting the small amount to another wallet. This wallet then sent the funds to Bitbank's hot wallet, according to Arkham Intelligence data.
Furthermore, the remaining Bitcoin was transferred to a new wallet. For context, Bitbank is among the cryptocurrency exchanges dedicated to facilitating Mt.Gox payments. Instead of sending it directly to Bitcoin holders. The funds will be distributed across five trading platforms. These companies include Bitstamp, Bitbank, SBI VC Trade, and Bitgo.
Moreover, these platforms have assured customers that it will be possible to access the funds within up to 90 days of receipt. However, the nature of these small transactions raises questions about whether they serve as tests for larger transfers. The trustee had earlier indicated that repayment would begin in early July. However, the exact dates for the payment of funds to the trading platforms are still unannounced
The anticipation of these payments has greatly influenced the cryptocurrency market. During the past month. The price of Bitcoin fell by more than $12,000. At press time, Bitcoin's price was $57,675, recording a 4.19% decline over the past 24 hours.
What further accelerated the market decline. The German government offloaded another 1,300 Bitcoins to major cryptocurrency exchanges. Totaling approximately $76 million. This action caused the price of Bitcoin to fall below $58,000 shortly after the liquidation. In addition, the government transferred 1,700 bitcoins worth $98.76 million to an unknown wallet, sparking speculation about an impending sale.
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