Crypto Market Slides as Mt. Gox Shifts Over $3 Billion BTC to Another Wallet

Former crypto exchange Mt. Gox may be starting the next batch of creditor repayments after it moved a substantial amount of BTC, up to the tune of $3 billion to an internal wallet. The collapsed exchange finally began repaying its users after ten years of being out of business.

Interestingly, the new transfer coincides with a market downturn that has seen about 1.31% wiped out of the total market cap, resulting in a $50 billion loss from the previous day. Investors have been keenly watching the market reaction following the recent movement and speculations abound about a possible price drop to the $65k level.

Mt. Gox Might Commence Next Payment Soon

Arkham Intelligence, a sophisticated blockchain insight platform, reported the significant movement which started about 2 hours ago from press time. According to data, the defunct crypto exchange moved about $3.1 billion BTC in two separate transactions. The bulk of the transfer was made to a wallet address labeled ’15yPU…fgi9,’ carrying exactly 42.587k BTC, valued at approximately $2.85 billion.

Shortly after, the exchange transferred another 5.11k BTC, worth $340.29 million to another internal wallet identified as ‘1JKM…eMVX.’ The timing and manner of these transfers suggest that Mt. Gox creditors may be receiving their remaining payments today.

Less than 24 hours ago, Coinfomania reported that Mt. Gox initiated a series of eight small transfers, moving about $0.02 BTC in each and amounting to $11,040. Those transfers were test transfers to set grounds for the larger ones done today.

Ten years after its collapse in 2014, Mt. Gox announced it would start repaying its creditors from the first week of July 2024. The bankrupt exchange will repay about 140,000 BTC, valued at $9 billion, and 143,000 Bitcoin Cash (BCH), worth about $73 million. According to Arkham data, Mt. Gox still holds 90.344k BTC, worth $6.02 billion, to be repaid.

Bitcoin Movement Amid Large Transfer

Meanwhile, amid the large fund transfer, the price of BTC has taken a notable hit. The flagship cryptocurrency previously reached a high of $68,000 less than 24 hours ago, however, following the recent large BTC transfer, the price of the coin dropped, losing about $1,600 in one day. At press time, BTC is changing hands at $66,497, representing a 1.22% decline.

Notably, while the price of the coin is taking a nosedive, the trading activity, depicted in its 24-hour trading volume has surged by more than 46% to $43.1 billion. Ultimately, the general confidence in the market remains positive, as seen in the crypto fear and greed index data pointing to 71, ‘greed.’