Potential renewed selling pressure from Mt. Gox in the Bitcoin market
On Wednesday, an address linked to the defunct Mt. Gox exchange transferred 13,265 BTC, valued at $784 million. Of this, 12,000 BTC was moved to an address identified as “1PuQB,” according to Arkham Intelligence, a data tracking platform.
The remaining BTC was sent to “1Jbez,” an address recognized by Arkham as Mt. Gox’s cold wallet. The exchange still holds over 46,000 BTC. This summer, Mt. Gox creditor reimbursements have contributed to downward pressure on BTC’s price.
However, the recent on-chain movement may not result in significant selling pressure, according to Alex Thorn, head of research at Galaxy Digital. Thorn explained on X that of the 13,265 BTC moved, only 1,265 BTC (worth $74.5 million) is likely intended for distribution, with 12,000 BTC being transferred to estate cold storage.
Despite the movement of coins, BTC has remained steady above $59,000, as per CoinDesk data.
According to Wu Blockchain, the exchange address transferred 13,265 BTC (worth $784 million) at 7:39 AM UTC+8 on August 21, 2024. Of this amount, 12,000 BTC was moved to a new address, and the remaining 1,265 BTC went to an address associated with Mt. Gox’s cold wallet.
the exchange, which collapsed in February 2014, has been in the process of returning funds to creditors under a legal rehabilitation plan. Recently, a Bitgo-managed Mt. Gox wallet containing 33,105 BTC conducted a test transaction, signaling that Bitgo is in the final stages of preparing to distribute the remaining assets to creditors.
To date, $5.77 billion in Bitcoin has been distributed to exchanges as part of the Mt. Gox asset distribution. Despite concerns about a potential sell-off, the market has remained stable, with Bitcoin trading up 0.6% at approximately $59,403 on Wednesday.
