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Mt. Gox’s Staggering $3B Bitcoin Transfer Stirs Up Market FUD

Mt. Gox's Staggering $3B Bitcoin Transfer Stirs Up Market FUD

  • Mt. Gox transfers $3 billion in Bitcoin for creditor payouts.
  • Bitcoin price drops 1.06% amidst market volatility concerns.

In a significant development, wallets associated with the defunct cryptocurrency exchange Mt. Gox have transferred a substantial amount of Bitcoin. Data from Arkham Intelligence reveals that approximately 43,000 Bitcoin, valued at $3 billion, were moved on May 28. This marks the first such transfer in five years and signals a major step toward resolving the long-standing bankruptcy proceedings of the exchange.

The transfers occurred in three separate transactions: 12.24k BTC, 14.05k BTC, and 16.589k BTC. Notably, the largest single transaction involved 32.49k BTC, worth about $2.2 billion, sent to an unmarked address at 12:46 UTC+8. Whale Alert, a well-known on-chain movement tracking service, highlighted these moves.

Mt. Gox collapsed in 2014 following a massive security breach and currently holds 137,892 BTC. The exchange has announced plans to distribute these holdings and 143,000 Bitcoin Cash (BCH) to its creditors by October 31, 2024. This distribution plan aims to return assets to those affected by the exchange’s downfall.

Mt. Gox Transactions Outflows, Source: ArkhamIntelligence

FUD Around?

The sudden movement of such a large quantity of Bitcoin has generated concern within the cryptocurrency community. Bitcoin’s price dropped by 1.06%, trading at $27,844.97, with trading volume surging by 64.15%. This activity has sparked fears of increased market volatility and a potential dump of BTC and BCH.

Despite these concerns, some market participants remain optimistic. They argue that many of the coins are likely held by long-term holders who may not sell immediately. Additionally, there is speculation that institutional investors, including those anticipating Bitcoin ETFs, might absorb any selling pressure.

As Mt. Gox moves closer to distributing its remaining holdings, the cryptocurrency market braces for potential impacts. While the return of assets offers hope to creditors, the broader market remains watchful of the potential for increased volatility in the coming months.

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