$2.7 Billion in Bitcoin Transferred from Cold Storage by Mt. Gox During Market Downturn
The recent transfer of billions of dollars worth of Bitcoin (BTC) from the Mt. Gox bankruptcy estate to an unidentified wallet has raised concerns about the impact on crypto prices. According to data from Arkham Intelligence, a cold storage wallet linked to Mt. Gox moved 47,228 BTC, equivalent to around $2.71 billion. This transfer followed smaller test transactions conducted by the estate.
Repayments from Mt. Gox to creditors, expected to begin this month, involve distributing approximately 142,000 BTC and 143,000 Bitcoin Cash. This move marks progress in resolving the long-standing issue for the 127,000 creditors affected by the exchange’s collapse in 2014.
However, challenges persist in the crypto market, including the German government’s transfer of seized Bitcoin assets to its own wallet. The government confiscated nearly 50,000 BTC from operators of the illegal streaming site Movie2k.to in 2020. This action, coupled with other factors like rising interest rates and economic instability, adds to the uncertainty in the market.
Additionally, the recent transfer of roughly 1,300 BTC to various exchanges has fueled concerns about a potential price decline. Pav Hundal, lead market analyst at Swyftx, warned that the influx of supply from Mt. Gox and the German government could push Bitcoin’s price down to $50,000.
Bitcoin’s price has already dropped by 9.5% this week, falling from $62,000 to around $56,900. These developments underscore the ongoing volatility and challenges facing the cryptocurrency market. Investors are closely monitoring these movements as they navigate the evolving landscape of digital assets.
