Bitcoin [BTC] saw a notable 1.30% decline in value after significant activity from the defunct cryptocurrency exchange Mt.Gox. Arkham Intelligence reported that Mt. Gox transferred over $2.9 billion worth of BTC from its cold wallets to an unknown address. This transfer marks the first asset movement by Mt. Gox in five years.
According to the network, Mt. Gox moved a total of 42,830 BTC through multiple transactions. These transactions primarily took place between 1:41 am and 2:54 am UTC, involving 21 transfers mostly moving 2,000 BTC each. Additionally, a significant transfer of 32,137 BTC happened at 4:11 am UTC, all directed to a single, unlabelled address.
This sudden asset movement has sparked interest in the cryptocurrency community, particularly since Mt. Gox still holds around 138,000 BTC, valued at over $9.36 billion, in its identified wallets.
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Market Reaction
The Bitcoin market reacted swiftly, The cryptocurrency’s price fell by about 1.30% from $69.374, at the time of the first transfer to $67,875. This drop comes as Bitcoin has been struggling to surpass the $70,000 resistance level, despite several bullish attempts. The king coin’s price has been consolidating within the $65,000-$70,000 range for some time. The market’s reaction to Mt. Gox’s large BTC transfer highlights Bitcoin’s price sensitivity to significant movements of dormant assets, especially from high-profit wallets.
Looking Back
Mt. Gox, once the largest Bitcoin exchange globally, collapsed in 20214 after a massive hack resulted in the loss of 850,000 BTC. The exchange has since been entangled in legal battles and repayment plans for affected users. In September 2023, the trustee of Mt, Gox announced a 12-month extension for the repayment deadline, now set for October 31, 2024.
The recent movements have led to speculation about the motives behind the transfer. The trustee firm Nagashima Ohno and Tsunematsu has not yet commented on he destination or purchase of the transferred Bitcoin,
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