- Mt. Gox transferred 0.021 BTC to an unknown address.
- The defunct exchange also transferred 44,527 BTC to an internal wallet.
- Over 99% of the Mt. Gox BTC will be sold, an analyst predicted.
Mt. Gox, a bankrupt cryptocurrency exchange formerly based in Tokyo, appears closer to transferring the massive amount of bitcoins it holds in its wallet. A recent transaction identified by blockchain analysis platform Arkham Intelligence shows the defunct exchange transferred 0.021 BTC to an unspecified address, possibly a transfer test.
The Mt. Gox wallet currently holds 138,985 BTC, worth $8.8 billion at Bitcoin’s current price. The repayment of these bitcoins has been one of the most anticipated events in the crypto sector, as billions of dollars in BTC return to creditors. Some expect the repayment to trigger a BTC sell-off.
Crypto enthusiasts highlighted the fact that Mt. Gox has $8 billion in BTC, while the German government had only $3 billion in BTC, which it sold off. The authorities began selling their BTC holdings in June, contributing to Bitcoin’s drop from above $70,000 to as low as $55,000.
Additionally, Lookonchain data reveals that Mt. Gox moved 44,527 BTC (worth $2.84 billion) to an internal wallet. It’s possible that the defunct crypto exchange is preparing for repayments, which could increase Bitcoin’s volatility.
Mt. Gox has a repayment window between July and October, and the test transaction of 0.021 BTC has led the crypto community to believe that the transfers will begin soon. Finance analyst Jacob King predicts that the majority of the Bitcoin from the Mt. Gox repayment (around 99%) will likely be sold, potentially sending BTC into a “harsh bear market.”
As of press time, Bitcoin is trading at $63,400, according to CoinMarketCap data, with a 42.43% surge in trading volume. The leading digital asset has not yet reclaimed the $65,000 price level, and it remains to be seen whether BTC will close the daily candle above $60,000.
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