Sun, June 16, 2024

107,000 Bitcoins Moved from MtGox, Worth $7 Billion

Bitcoin Could Reach $100,000 Within a Year

Quick Look:

  • Massive Transfer: 107,000 BTC, worth about $7 billion, moved from MtGox-related addresses on 28th May 2024.
  • Market Reaction: Bitcoin dropped 1.4% from $70,000 to $67,680 following the transfers.
  • Creditor Holdings: Creditors will hold most BTC, potentially easing sell-off concerns.

The sequence of transfers began with minor transactions, such as a $3 test transfer on 20th May 2024, followed by a $160 small transaction on 28th May. The remaining transactions ranged significantly, with values spanning from $1.2 million to a staggering $2.2 billion, highlighting the magnitude and complexity of this movement. The total Bitcoin transfers moved to a new address, 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6, according to Julio Moreno, Head of Research at CryptoQuant.

BTC Drops 1.4% to $67,680 After MtGox Moves $7B

The market responded swiftly to this development. On the same day, the initial price of Bitcoin was recorded at $70,000. Following the announcement and the subsequent transfers, the price experienced a decline of 1.4%, dipping to a low of $67,680. Given the sheer volume involved, analysts and market watchers are particularly attentive to the potential impact on Bitcoin’s price.

MtGox, Once Handling 70% of Bitcoin, in Bankruptcy Since 2014

The backdrop to these events traces back to MtGox’s tumultuous history. Once the world’s largest BTC exchange, handling 70% of all bitcoin transactions at its peak in 2013, MtGox declared bankruptcy in 2014 after losing over 800,000 BTC in a high-profile hack. Since then, creditors have undergone lengthy legal processes, awaiting repayment of their lost assets.

The recent transfer is particularly significant. This follows the announcement made in September 2023, which extended the repayment deadline for creditors by a year to October 31, 2024. This extension has added to the anticipation and uncertainty surrounding the final resolution of creditor claims.

Additional 42,830 BTC ($2.9B) Moved on 28th May 2024

This latest movement marks the first significant transfer of MtGox-related bitcoins over five years. Additional data from Arkham Intelligence revealed that on May 28, 2024, entities transferred 42,830 bitcoins, equivalent to $2.9 billion. This brings the total value of BTC held to an estimated $9.42 billion.

MtGox’s $7B Bitcoin Transfer Highlights Ongoing Market Impact

The recent activities surrounding MtGox’s bitcoin holdings underscore the ongoing complexities and ramifications of the exchange’s infamous collapse. These developments have tested the market’s resilience, but the final impact on BTC’s price and the broader cryptocurrency landscape is yet to unfold. As the repayment deadline approaches, stakeholders will closely monitor any further movements and statements from the trustee managing the disbursement of these substantial assets.

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