Bitcoin Plunges 2% On Selling Pressure Concerns As Mt. Gox Wallets Transfer $7.2 Billion BTC Ahead Of Creditor Payments

Bitcoin
plunged
2%
as
wallets
belonging
to
the
defunct
crypto
exchange
giant
Mt.
Gox
transferred
more
than
107k
Bitcoin
(BTC)
to
an
unknown
wallet
address
earlier
today.

The
series
of
transfers,
valued
at
over
$7.2
billion,
come
as
the
crypto
exchange
prepares
to
return
BTC
holdings
to
creditors
before
the
end
of
October
this
year.

BTC
Plunges
Below
$70K

BTC
slid
2%
to
a
low
of
$67,450.99
on
the
news
over
the
past
24
hours
on
concerns
the
transfers
will
create
selling
pressure.
It
has
since


recovered

slightly
to
trade
at
$67,881
as
of
3:05
a.m.
EST.

Over
$9.4
billion
in
BTC
and
$72
million
in
BCH
is
owed
to


Mt.
Gox’s

127,000
creditors.
In
addition,
Japanese
yen
worth
approximately
$445.8
million
will
be
paid
out
as
well.

K33
Research


predicted

in
an
Apr.
23
note
that
the
exchange’s
payouts
to
creditors
could
“spook
the
market”
and
exert
selling
pressure
on
the
largest
crypto
by
market
cap.

“Mt.
Gox
coins
could
become
a
relevant
negative
price
contributor
in
the
next
weeks,”
K33
Research
analysts
Anders
Helseth
and
Vetle
Lunde
wrote
in
the
note. 

Alex
Thorn,
the
head
of
research
at
Galaxy,
tracked
the
movements
on
X.
He


believes

that
most
of
the
BTC
that
will
be
paid
out
to
creditors
later
this
year
might
not
be
sold
off
immediately.
However,
he
is
not
as
confident
that
creditors
will
hold
on
to
their
Bitcoin
Cash
(BCH)
payouts.

Funds
Leave
Mt.
Gox
Cold
Wallet
For
The
First
Time
In
Five
Years 

On-chain
data

shows
that
the
BTC
was
moved
through
thirteen
transactions.
Two
test
transactions
of
$3
and
$160
were
performed
on
May
20
and
earlier
today,
respectively.
Thereafter,
the
remaining
transfers
ranged
from
$1.2
million
to
$2.2
billion
worth
of
the
leading
crypto.

The
recent
transfers
marked
the
first
time
in
more
than
five
years
that
funds
have
been
moved
out
of
Mt.
Gox’s
cold
wallets.
All
of
the
BTC
was
sent
to
the
address
labeled
1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6,
according
to
CryptoQuant
head
of
research
Julio
Moreno.

Outflows
from
Mt.
Gox
addresses
continue:

Now
a
total
of
42,829
Bitcoin
have
moved
out
from
Mt.
Gox
addresses
in
the
last
few
hours.

All
coins
have
been
transferred
to
a
new
address:
1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6

pic.twitter.com/s19TtkMP3i

—
Julio
Moreno
(@jjcmoreno)

May
28,
2024

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