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The recent Bitcoin transfers have had an immediate impact on the market, with BTC price dropping to around $59,600, marking a decline of over 2% in the past 24 hours.
Once-leading Bitcoin exchange Mt. Gox recently started another wave of BTC transfers. It has reportedly sent 12,000 Bitcoin, worth over $709 million, to an unknown wallet, according to blockchain analytics firm PeckShield. This movement has potentially caused the latest drop in Bitcoin’s price, falling below the $60,000 mark.
As per the X post by PeckShieldAlert, Mt. Gox moved the 12,000 BTC to a wallet address labeled “1PuQB…nWhTb” late Tuesday night. Additionally, a separate transfer of 1,264.69 BTC, worth $74.77 million, was sent to another Mt. Gox-associated cold wallet address. These transactions have yet to be further distributed to other wallets, sparking speculation among market observers.
The timing of these transfers is particularly noteworthy, as they follow a pattern observed in recent weeks, where movements of Bitcoin from Mt. Gox have often preceded creditor repayments and major movements in BTC prices.
Notably, on August 13 and 14, a wallet likely controlled by the crypto exchange platform BitGo moved nearly $2 billion worth of Bitcoin received from Mt. Gox to a different wallet. Soon after, the cryptocurrency fell below the $60,000 level, only to recover in the following days.
Mt. Gox suffered a massive attack a decade ago, resulting in the loss of over 850,000 BTC. Since then, creditors have been fighting for their Bitcoin holdings. The repayment process, which began in July, has been gradually gaining momentum, with recent data indicating that approximately 70% of the transactions have been completed.
As of last week, more than 17,000 creditors have received over $3.2 billion worth of Bitcoin. However, the exchange still holds around $2.7 billion in BTC, as per the data by CryptoQuant.
Market Movement
The recent Bitcoin transfers have had an immediate impact on the market, with Bitcoin price dropping to around $59,600, marking a decline of over 2% in the past 24 hours. The cryptocurrency has also experienced a 2% downfall in its market cap, currently standing at $1.17 trillion.
The overall market has also felt the effects, with Ethereum (ETH) slipping below $2,600, currently trading at $2,606. Additionally, the crypto fear and greed index has dipped to 26, indicating a sense of fear among investors.
Despite the market fluctuations, institutional interest in Bitcoin remains strong. On August 20, US spot Bitcoin exchange-traded funds (ETFs) recorded $88 million in inflows, with BlackRock’s IBIT and Ark’s ARKB attracting $55.4 million and $52 million, respectively. However, Grayscale’s GBTC saw a net outflow of $12.8 million on Tuesday.
As the Mt. Gox repayment process continues, the investors will keep a close eye, given its potential to influence Bitcoin’s price.
