Eagle-eyed investors have spotted wallets belonging to Mt. Gox, a collapsed crypto exchange, moving over $7 billion of the cryptocurrency.
The defunct crypto exchange reportedly transferred over, 141K BTC, worth over $9 billion, from its cold wallets, bringing some panic to the market.
According to the data from Arkham Intelligence, the exchange, which collapsed in 2014, transferred the assets in multiple transactions to an unknown address.
Launched in 2010, Mt. Gox quickly gained popularity and became the largest bitcoin exchange by 2013, handling 70% of all bitcoin trades globally. However, in early 2014, it halted all withdrawals and suspended trading. Shortly after, the site went offline, and the company filed for bankruptcy protection after losing over 800,000 bitcoins.
With its actions causing panic, former CEO, Mark Karpelès, assured people that the move was made to prepare for distributions to claimants. The Mt. Gox estate trustee subsequently released a statement echoing Karpelès’ sentiments.
The supply and demand dynamics of Bitcoin have been favourable to bulls recently. April 2024’s halving event reduced the number of new Bitcoin entering circulation, while the launch of #ETFs at the start of the year increased institutional demand.
Inflows to institutional crypto products reached a new all-time high of $14.9 billion for 2024 after jumping by $1 billion in a single week, according to Coinshares.
The more than 100,000 previously dormant Bitcoin that Mt. Gox’s trustees could imminently unleash on the market may swing the scales.
According to CryptoQuant, currently, Mt. Gox’s Rehabilitation Trustee retain control of the new wallets, and no repayments have been made to creditors thus far, so no real impact. But with repayment to creditors targeted by October 31, 2024, these future repayments could sway Bitcoin’s market dynamics.
Some analysts however expect recipients to hold their coins.
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