Mt. Gox, the defunct Japanese cryptocurrency exchange, has recently conducted a significant transaction by transferring 47,229 Bitcoin (BTC) to a new wallet address, valued at $2.71 billion based on current prices. This move marks the first major transaction since May, as reported by blockchain analytics platform Arkham Intelligence. The Bitcoin was transferred out of “cold storage” at 12:30 am UTC on July 5.
In recent months, Mt. Gox has been conducting smaller test transactions, leading up to its plan to begin repaying creditors this month. Creditors are set to receive a total of $8.5 billion worth of Bitcoin. Market observers have expressed concerns about the potential impact on the market due to the large volume of Bitcoin that could be sold by Mt. Gox creditors. These holdings have been inaccessible for over a decade.
Despite worries of a significant sell-off, some analysts believe that the total amount of Bitcoin that may enter the market is closer to $4.5 billion. On May 28, Mt. Gox transferred nearly $7.3 billion worth of Bitcoin to an unknown wallet address, leading to a 2% drop in the price of Bitcoin.
As of now, Bitcoin is trading at $57,328, reflecting a 6.9% decline over the past week. However, the cryptocurrency has seen year-to-date gains of 35.6%. The price of Bitcoin experienced a sharp fall on July 4, followed by further decline in the subsequent hours.
This situation is evolving, and more information will be provided as it becomes available.