Bitcoin experienced a drop of over 3% on July 16 due to concerns related to the defunct exchange Mt. Gox.
Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price was under pressure after reaching $65,000 on Bitstamp.
The decline occurred as Bitcoin from Mt. Gox moved between wallets associated with its rehabilitation program.
Crypto intelligence firm Arkham reported that approximately 92,000 BTC (valued at around $5.7 billion) was transferred out of Mt. Gox’s cold wallet, constituting about two-thirds of the exchange’s total holdings.
“Mt. Gox moved 44,527 $BTC (2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment,” noted onchain analytics platform Look Into Bitcoin on X (formerly Twitter).
The impending distribution of refunds to Mt. Gox creditors, who originally lost their assets when the exchange was hacked and subsequently closed more than a decade ago, has historically impacted prices negatively.
Markets fear massive BTC sales as a result.
However, some argue that these fears are exaggerated. “And here is the next Bitcoin FUD,” remarked popular crypto investor and YouTuber Quinten Francois on X.
Cointelegraph previously reported that sell-side pressure affecting markets in recent weeks also stemmed from the German government, which had sold off its stocks of confiscated BTC, now depleted.
The disruption from these concerns interrupted what had been one of Bitcoin’s strongest performances in recent months.
BTC/USD had last reached $65,000 on June 21, a critical level reflecting Bitcoin’s short-term holder cost basis.
This cost basis, also known as realized price, serves as support during bull markets and was last breached in August 2023.
Look Into Bitcoin recorded the short-term holder cost basis at $64,835 as of July 15.
The resurfacing of Mt. Gox-related fears thus added to the already present market anxieties, influencing Bitcoin’s price movements and market sentiment.
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