Mt. Gox Completes $3 Billion Bitcoin Transfer for Creditor Payouts, Bitcoin Price Declines by 1.06% amid Market Volatility Concerns
In an important development, the wallets linked to the now-defunct Mt. Gox cryptocurrency exchange have successfully transferred a significant amount of Bitcoin. According to data from Arkham Intelligence, approximately 43,000 Bitcoin, valued at $3 billion, were moved on May 28. This transfer, which is the first of its kind in five years, represents a major step towards resolving the longstanding bankruptcy proceedings of the exchange.
The transfers were conducted through three separate transactions: 12.24k BTC, 14.05k BTC, and 16.589k BTC. Notably, the largest transaction involved 32.49k BTC, worth around $2.2 billion, which was sent to an unidentified address at 12:46 UTC+8. Whale Alert, a well-known service for tracking on-chain movements, brought attention to these transactions.
Mt. Gox faced a collapse in 2014 due to a massive security breach and currently holds 137,892 BTC. The exchange has announced its intention to distribute these holdings, as well as 143,000 Bitcoin Cash (BCH), to its creditors by October 31, 2024. This distribution plan aims to return assets to those affected by the downfall of the exchange.
The sudden transfer of such a substantial amount of Bitcoin has raised concerns within the cryptocurrency community. As a result, the price of Bitcoin dropped by 1.06%, reaching a trading price of $27,844.97, while the trading volume experienced a surge of 64.15%. This activity has sparked fears of increased market volatility and the possibility of a significant sell-off of BTC and BCH.
However, despite these concerns, some market participants maintain a sense of optimism. They argue that many of the coins are likely held by long-term investors who may not immediately sell their holdings. Furthermore, there is speculation that institutional investors, including those awaiting the arrival of Bitcoin ETFs, might absorb any selling pressure.
As Mt. Gox moves closer to distributing its remaining holdings, the cryptocurrency market prepares for potential impacts. While the return of assets offers hope to the creditors, the broader market remains vigilant regarding the potential for heightened volatility in the coming months.
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