Years ago, Mt. Gox made headlines in the cryptocurrency world when it collapsed. Recently, the exchange made a significant move by transferring 47,229 BTC to a new wallet address, sparking attention. This transfer is valued at approximately $2.71 billion at current market prices and marks the first major move by the exchange since May. However, this move has raised concerns in the cryptocurrency market and is seen as potentially impacting the market, leading to some apprehension and signaling typical selling pressure.
Starting this month, Mt. Gox is beginning the process of repaying creditors, with an estimated total repayment amount of $8.5 billion in Bitcoin. The large-scale repayment plan has raised concerns about its potential impact on the Bitcoin market, with some market commentators fearing that such a large amount of Bitcoin being sold could result in a drop in the market price due to a sudden increase in supply.
The large transfer, which occurred on July 5 at 03:30, was preceded by several small test transactions by Mt. Gox in preparation for the large transfer and upcoming repayments. Concerns are high among market observers, who believe that the flow of Bitcoin sold by creditors could significantly lower the price. However, some analysts are trying to downplay expectations of a serious selling wave, stating that the actual amount of Bitcoin to be sold will be less than the total repayment amount, estimated to be close to $4.5 billion.
In May, Mt. Gox transferred Bitcoin worth approximately $7.3 billion to an unknown wallet address, causing the Bitcoin price to drop by up to 2%. This historical context raises concerns about potential reactions to the recent transfer. Bitcoin has experienced significant fluctuations recently, with a sharp decline on July 4 and a further drop in the hours following the transfer. At the time of writing, Bitcoin had dropped below $57,000, falling by 6.9% last week, but gaining 35.6% since the beginning of the year.
Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research before making any investment decisions.