Mt. Gox appears to be shifting funds from cold storage in preparation for distribution to creditors, with nearly 100,000 BTC in outflows on July 16.
Bitcoin dropped over 3% on July 16 as concerns about the defunct exchange Mt. Gox resurfaced, causing market anxiety.
Mt. Gox Bitcoin Outflows Lower Price
Data from TradingView showed BTC price action under pressure after hitting $65,000 on Bitstamp.
The downturn came as BTC belonging to Mt. Gox moved between wallets affiliated with its rehabilitation program.
According to data from crypto intelligence firm Arkham, the amount involved totaled around 92,000 BTC (approximately $5.7 billion) in outflows from Mt. Gox’s cold wallet, which is about two-thirds of the exchange’s total holdings.
“Mt. Gox moved 44,527 $BTC (2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment,” onchain analytics platform Look Into Bitcoin responded on X (formerly Twitter).
Similar events surrounding Mt. Gox, now preparing to distribute refunds to creditors who originally lost their BTC when the exchange was hacked and closed down more than a decade ago, have negatively impacted the price, with markets fearing mass BTC sales as a result.
Some, however, believe those fears are exaggerated.
“And here is the next Bitcoin FUD,” popular crypto investor and YouTuber Quinten Francois wrote in part of an X reaction.
As reported earlier, sell-side pressure spooking markets in recent weeks also came from the German government, whose stocks of confiscated BTC are now depleted.
BTC Price Flirts with Key “Bull Market Trendline”
The flurry of concern disrupted what had been Bitcoin’s best performance in months.
Summary Review: While the transfer of a large amount of BTC from Mt. Gox has sparked concerns and affected Bitcoin’s price, some analysts believe that the fears are not entirely justified and may be contributing to unnecessary market anxiety.
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