The defunct crypto exchange Mt. Gox is gearing up to distribute $5.35 billion worth of Bitcoin to creditors, initiating test transactions as Bitcoin's price faces resistance. Following the distribution of nearly 50,000 Bitcoins to creditors on Kraken and Bitstamp over the past two weeks, Mt. Gox is now ready to transfer the remaining 80.5K BTC.
Mt. Gox Bitcoins on the Move
According to data from Arkham Intelligence, a Mt. Gox address (12Rgp) recently transferred 0.02 BTC (approximately $1,350) to another address starting with 1Adb and 0.0001 BTC to an address starting with bc1q. These transactions suggest that Mt. Gox is conducting test transfers before moving the remaining 80,128 BTC, currently valued at $5.35 billion.
In the past two weeks, Mt. Gox has already moved the first tranche of Bitcoins to creditors on Kraken and Bitstamp, although some creditors faced withdrawal issues that have since been largely resolved. After nearly a decade of waiting since the exchange went defunct, this distribution marks a significant step towards closing a major chapter in the crypto industry, potentially offering psychological relief to the market.
BTC Under Pressure
Despite the looming distribution, many Mt. Gox creditors are demonstrating a willingness to hold onto their BTC amidst market volatility. Bitcoin has managed to absorb much of the selling pressure effectively. However, late Monday saw Bitcoin coming under renewed selling pressure after facing rejection at the $70,000 resistance level. As of press time, Bitcoin's price has dropped by over 4%, slipping below $66,500.
Popular market analysts, including PlanB, had predicted that breaking above $70,000 could see Bitcoin's price rally extend to $150,000 by the year's end. However, additional selling pressure has also been attributed to the U.S. government's movement of 29,800 BTC from Silk Road, coinciding with President Donald Trump's pitch to make Bitcoin a strategic U.S. reserve.
Looking ahead, the upcoming U.S. Federal Reserve meeting, where Chairman Jerome Powell will address inflation and the central bank’s plans for rate cuts, is expected to impact market sentiment. On the technical front, as long as BTC holds above $65,800, analysts predict the downside risk is limited, with a potential quick bounce back to $68,000.
In summary, while the distribution of Mt. Gox's remaining Bitcoins and recent U.S. government actions have exerted pressure on Bitcoin's price, the market remains resilient. The outcome of the Federal Reserve meeting will likely play a crucial role in determining Bitcoin's short-term price trajectory.
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