According to a report from Arkham Intelligence, a wallet believed to belong to BitGo, one of the cryptocurrency exchanges in charge of handling Mt. Gox repayments transferred 33,023 Bitcoin, valued at almost $2 billion, to a new wallet.
After multiple Bitcoin distributions over the past few months, the Mt. Gox wallet has $2.8 billion worth of Bitcoin.
The major Bitcoin transfer followed a small transaction made in the earlier hours. The BitGo wallet reportedly moved around $5.88 worth of Bitcoin after receiving over $2 billion Bitcoin stash from Mt. Gox.
BTC on The Move
The whole process suggests that BitGo has started distributing Bitcoin to its customers, who are Mt. Gox creditors. If so, the exchange would be the final one to execute the long-waited repayment, following Kraken and Bitstamp. Previous Kraken and Bitstamp distributions also began with small test transfers before major Bitcoin moves.
A number of BitGo users confirmed they have received their cryptocurrency assets, noting that they need to submit a video verification for withdrawals. The designated exchange has not yet confirmed the receipt of Bitcoin or the repayment execution.
BREAKING: Bitgo has just moved $2B of Mt. Gox BTC. pic.twitter.com/3aPFPhmGGN
— Arkham (@ArkhamIntel) August 13, 2024
Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after losing 850,000 BTC due to hacking and mismanagement. After a lengthy legal process, the Mt. Gox trustee announced in July this year that they started distributing Bitcoin and Bitcoin Cash to the creditors. Since then, the Mt. Gox wallet has made several Bitcoin transfers to the chosen exchanges.
The distributions are being handled by five exchanges, including Kraken, Bitstamp, and BitGo. Kraken confirmed the receipt of 49,000 BTC, and Bitstamp said it received the first tranche of 10,000 BTC. The timeline of other exchanges is uncertain.
After numerous transactions, the wallet now holds around 46,100 BTC, equivalent to approximately $2.8 billion.
Bitcoin’s Price Unaffected
When the distribution plan surfaced, Bitcoin experienced some corrections, as investors were concerned about the increasing selling pressure on the Bitcoin market.
At the time of the Mt. Gox incident, Bitcoin’s price was below $500. Bitcoin is currently trading at around $61,000, over 100-time jump since the historical collapse. After a long wait, Mt. Gox creditors may want to sell their Bitcoin.
However, the selling pressure may not be as intense as expected, as some creditors may opt for earlier payouts with a discount or wait for higher prices to sell. Some experts suggest that since many of Mt. Gox creditors are early Bitcoin adopters, they may choose to hold, rather than selling.
Bitcoin has shown little reactions to the recent Mt. Gox repayments. In fact, the price is more affected by the macro outlook. Earlier this month, Bitcoin nosedived below $50,000 as fears of a US recession mounted.
All eyes are now on the next Consumer Price Index, scheduled for Wednesday, August 14. The market is anticipating that the CPI report for July will show a continued decline in inflation, a trend observed in recent months.
If the CPI data confirms the continuation of the disinflation trend, it’s likely to strengthen expectations for an interest rate cut in September. This could positively impact the cryptocurrency market.
Lower interest rates typically result in more money circulating in the market and increased liquidity can often lead to higher prices for assets, including cryptocurrencies.
Meanwhile, a report from Glassnode shows that the cryptocurrency market is showing signs of a shift from selling to holding. Despite recent market volatility, investors are increasingly opting to hold onto their Bitcoin.
The report notes that the accumulation trend score is at its highest point. This indicates a strong overall trend of accumulation in the market. In addition, large whales and long-term holders (LTHs) are increasing their Bitcoin holdings. After a period of selling, LTHs are now buying more than they’re selling.
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