The defunct Bitcoin exchange Mt Gox has transferred over $2.8 billion worth of Bitcoin on Tuesday, July 23, potentially as part of its creditor repayment plan. The infamous exchange, which collapsed in 2014, moved substantial amounts of BTC as it continues its repayment process.
Details of the Latest Bitcoin Transaction
According to Arkham Intelligence, on Tuesday, July 23, Mt Gox moved 42,587 BTC, valued at approximately $2.85 billion, to an internal wallet. An additional 5,110 BTC was transferred via a different internal wallet, indicating preparations for Bitcoin repayments. Currently, Mt Gox holds 90,344 BTC worth about $6 billion.
The repayment process began on Monday, July 22, coinciding with the upcoming launch of Spot Ethereum ETFs. This news has fueled speculation about its potential impact on Bitcoin and Ethereum prices.
Arkham Intelligence reported that Mt Gox had been making smaller Bitcoin transfers on Monday. The most recent transfer involved 0.021 BTC, valued at approximately $1,390, sent to an address 1C9Vo…t81Fa. This transaction, along with a similar one made six days prior, suggests a testing phase for transfer capabilities. These small-scale transfers appear to be precursors to larger movements.
On July 16, Mt Gox announced the initiation of Bitcoin and Bitcoin Cash repayments to 13,000 out of approximately 20,000 creditors, involving a massive $6 billion in Bitcoin. The latest shift on July 23 follows a similar approach.
Crypto Market Reaction
The timing of these substantial Bitcoin movements has sparked speculation about their impact on the crypto market. The July 23 transactions coincide with the launch of the Spot Ethereum ETF, which has already affected market sentiment.
The crypto market experienced a bearish session, with the Ethereum ETF launch seen as a "sell the news" event. Ethereum whales are capitalizing on the ETF hype, prompting analysts to warn of a potential dip below $3,000 for Ethereum. Despite the bearish trend, inflows from the ETF and gradual adoption are expected to drive Ethereum prices beyond $4,000, with Bitwise CIO Matt Hougan setting a $5,000 target for ETH following the ETF launch.
At press time, both Bitcoin and Ethereum prices had declined. Bitcoin traded at $66,676.33, down 1.34%, while Ethereum dropped 1.55% to $3,450. However, the decline in Bitcoin might be temporary, as seen on July 16 when the BTC price remained resilient at $65,000 despite a large repayment by Mt Gox.
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