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According to data from CryptoQuant, over 40% of the Bitcoin owed to Mt. Gox creditors has been distributed, equating to around $3.6 billion.
Defunct crypto exchange Mt. Gox has transferred 37,477 Bitcoin, valued at $2.5 billion, to an unknown wallet. This major transaction was identified by blockchain analytics platform Arkham Intelligence, which noted that the transfer took place at 4:53 am UTC on July 24.
Details of the Transfer
Out of the 37,477 BTC, 5,106 BTC were subsequently sent to a separate cold wallet owned by Mt. Gox. This transaction comes shortly after the exchange moved $2.8 billion in Bitcoin to various wallets on July 22. Of this, $340 million was sent to four wallets associated with the crypto exchange Bitstamp, one of the five exchanges working with the Mt. Gox trustee to return funds to creditors.
According to data from CryptoQuant, over 40% of the Bitcoin owed to Mt. Gox creditors has been distributed, equating to around $3.6 billion. However, $5.6 billion is still pending. The total amount owed to approximately 127,000 creditors is about $9 billion, stemming from the exchange’s collapse in 2014 following a major security breach.
Some market observers fear that these large Bitcoin transfers could lead to a mass sell-off. However, analysts like Galaxy Digital’s head of research Alex Thorne argue that these concerns may be overblown. Thorne noted that a significant portion of the Bitcoin being repaid is owed to funds that are unlikely to sell immediately. Additionally, many individual creditors are expected to hold onto their Bitcoin rather than sell it quickly.
Market Reactions and Future Outlook
Despite the concerns, some analysts believe the market has already accounted for the potential impact of Mt. Gox’s repayments. This perspective suggests that the worst of Bitcoin’s price action is over. In other related news, creditors have started receiving their Bitcoin through Kraken, another exchange involved in the repayment process. Kraken has advised creditors to use Over-The-Counter (OTC) trading to manage their transactions, potentially reducing market volatility.
Bitcoin’s price has recently dipped below $66,000, influenced by the Mt. Gox transactions, BTC sale by the German government, and anticipation of an Ether ETF launch. However, some traders see this period as a buying opportunity. Pseudonymous crypto trader Emperor suggested looking for buying opportunities during price dips. “Best bet right now is to be ready to buy the levels on dips you feel comfortable with and accumulate till September,” Emperor wrote on X.
In addition, CryptoQuant contributor Axel Adler pointed out a significant decrease in Bitcoin deposit addresses, indicating a reduced willingness to sell, which could support the price if demand rises.
While the market closely watches the repayments from Mt. Gox, the general sentiment among analysts and traders remains cautiously optimistic. Many believe that the market has already adjusted to the expected impact of these transactions, and the broader outlook for Bitcoin remains positive.
