Bitcoin price drops as Mt. Gox appears to be shifting funds from cold wallet in preparation for distribution to creditors, with nearly 100,000 BTC in outflows on July 16.
Bitcoin (BTC) price shed over 3% on July 16 as what analysis called “FUD” involving defunct exchange Mt. Gox resurfaced.
Mt. Gox Bitcoin Outflows Send Price Below $60,000
Data from Coinstats showed BTC price action under pressure after hitting $65,000 on Bitstamp.
The downturn came as BTC belonging to Mt. Gox shifted between wallets affiliated with its rehabilitation program.
According to data from crypto intelligence firm Arkham, the amount involved totaled some 92,000 BTC (approximately $5.7 billion) in outflows from Mt. Gox’s cold wallet — around two thirds of the exchange’s total holdings.
Mt. Gox cold wallet transactions (screenshot). Source: Arkham
“Mt. Gox moved 44,527 $BTC(2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment,” onchain analytics platform Look Into Bitcoin responded on X (formerly Twitter).
Mt. Gox moved 44,527 $BTC(2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment.#MtGox currently holds 138,985 $BTC($8.87B).https://t.co/f2q66eQNuk pic.twitter.com/JlqkZdzkPC
— Lookonchain (@lookonchain) July 16, 2024
Similar events surrounding Mt. Gox, now due to distribute refunds to creditors who originally lost them when it was hacked and closed down more than a decade ago, have had a detrimental effect on price, with markets fearing mass BTC sales as a result.
Mt. Gox wallet transfers $2.7 billion in BTC to unknown address
Some, however, believe those fears do not match reality.
“And here is the next Bitcoin FUD,” popular crypto investor and YouTuber Quinten Francois wrote in part of an X reaction.
As earlier reported, sell-side pressure spooking markets in recent weeks also came from the German government, whose stocks of confiscated BTC are now depleted.
BTC Price Flirts With Key “Bull Market Trendline”
The flurry of concern disrupted what had been arguably Bitcoin’s best performance in months.
BTC/USD last saw $65,000 on June 21, a significant level being Bitcoin’s short-term holder cost basis.
Also known as realized price, the cost basis of speculators traditionally functions as support during bull markets, and had last been violated in August 2023.
Look Into Bitcoin put the short-term holder cost basis at $64,835 as of July 15.
