- Mt. Gox’s repayment moves 44,527 BTC internally, triggering market concerns and renewed selling pressure. Despite TVL decline, Bitcoin remains active with 787,506 addresses, reflecting strong user engagement.
Mt. Gox collapsed in 2014 following a major hack that resulted in the loss of hundreds of thousands of Bitcoin [BTC]. The exchange has now started repaying its debt, initiating a series of transactions.
Meanwhile, this development has sparked concerns among market participants about potential mass selling by creditors who have waited for nearly a decade for reimbursements.
Blockchain data from Arkham revealed that Mt. Gox made two significant Bitcoin transactions. The first transfer involved 0.021 BTC, possibly as a test transaction.
Shortly after, a larger movement of 44,527 BTC, valued at approximately $2.84 billion, was recorded. These transactions suggest the exchange is preparing to distribute funds to creditors.
A related transfer on 4th July saw a Mt. Gox-linked wallet move 47,000 BTC, valued at about $2.7 billion, to a new wallet.
This was followed by two additional transfers: 1,544 BTC ($84 million) to Bitbank and 1,200 BTC ($64 million) to another wallet. These actions are part of the exchange’s plan to repay its creditors in phases.
Market reaction and Bitcoin price
Following these transfers, Bitcoin faced renewed selling pressure. Bitcoin’s price dipped below $63,000 after nearing $65,000 during early Asian trading hours.
At the time of reporting, Bitcoin’s price traded at $62,744, with a 24-hour trading volume of $40,169,134,704. This marks a 0.14% decline in the last 24 hours but a 10% increase over the past week.
The wallet linked to Mt. Gox currently holds 138,985 BTC, valued at approximately $8.87 billion. The distribution of 142,000 BTC as part of the repayment plan continues to be closely monitored. These internal transfers are seen as steps toward finalizing the repayment to creditors.
The movements have sparked considerable interest and speculation within the crypto community. Investors are keenly observing how these repayments will affect the broader market, given the substantial amounts involved.
The Total Value Locked (TVL) in Bitcoin saw its highest point in May 2024, exceeding $1.2 billion USD. However, there has been a decline, bringing the TVL down to $699.04 million USD.
Source: DefiLlama
Despite this reduction, Bitcoin remains highly active, with 787,506 active addresses recorded in the past 24 hours. This level of activity indicates continued strong user engagement and interest in Bitcoin.
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