Mt. Gox Haunts Bitcoin and Makes it Sink Below $63,000!

Bitcoin fell below $63,000 after the defunct exchange Mt. Gox moved $2.8 billion in BTC to internal wallets. This move has raised concerns among investors, leading to a 3% drop in the bitcoin price, which could continue to dip.

Mt.Gox moves $2.8 billion worth of bitcoin!

Mt. Gox, once the world’s largest Bitcoin exchange, went bankrupt in 2014 after losing hundreds of thousands of bitcoin in a hack. Since then, the exchange has been involved in a lengthy process of repaying creditors. On July 4, 2024, Mt. Gox began repaying its debts, fueling fears of a massive sell-off by creditors who have been awaiting repayments for a decade.

The recent token movement was initially detected when the wallet associated with Mt. Gox transferred 0.021 BTC (about $1,000) to a blockchain address, likely as a transfer test. This small movement was followed by a significant transfer of 44,527 BTC ($2.84 billion) to an internal wallet, according to data tracked by Arkham Intelligence. An observer stated that this move was likely part of the exchange’s creditor repayment plan.

The immediate reaction of BTC

Bitcoin reacted negatively to this transfer, currently plunging below $62,700 with a drop of over 3% in the last 24 hours. As Mt. Gox continues to repay its creditors, movements of large amounts of bitcoin could continue to influence market prices. Investors are closely monitoring these developments, anticipating potential impacts on their portfolios and future investment strategies.

The movement of $2.8 billion in BTC by Mt. Gox has caused a notable drop in the price of Bitcoin. This reflects investor concerns about the stability of the cryptocurrency market. The next moves by Mt. Gox will be crucial in determining the future direction of the market.