- Mount Gox’s refund moves 44,527 BTC internally, sparking market concerns and renewed selling pressure.
- Despite the decline in TVL, Bitcoin remains active with 787,506 addresses, reflecting strong user engagement.
Mount Gox collapsed in 2014 after a major hack that resulted in the loss of hundreds of thousands Bitcoin [BTC]. The exchange has now started paying down its debts and initiated a series of transactions.
Meanwhile, this development has raised concerns among market participants about possible mass selling by creditors who have been waiting for repayment for almost a decade.
Arkham blockchain data revealed that Mount Gox has made two significant Bitcoin transactions. The first transfer involved 0.021 BTC, possibly as a test transaction.
Shortly afterwards, a larger move of 44,527 BTC was recorded, worth approximately $2.84 billion. These transactions suggest that the stock market is preparing to distribute money to creditors.
A related one transfer on July 4 saw a Mount Gox-linked wallet move 47,000 BTC, worth about $2.7 billion, to a new wallet.
This was followed by two additional transfers: 1,544 BTC ($84 million) to Bitbank and 1,200 BTC ($64 million) to another wallet. These actions are part of the exchange’s plan to repay its creditors in phases.
Market Reaction and Bitcoin Price
Following these transfers, Bitcoin faced renewed selling pressure. Bitcoin’s price fell below $63,000 after approaching $65,000 during early Asian trading hours.
At the time of reporting, Bitcoin’s price was trading at $62,744, with a 24-hour trading volume of $40,169,134,704. This represents a decline of 0.14% in the past 24 hours, but an increase of 10% in the past week.
The wallet linked to Mount Gox currently contains 138,985 BTC, worth approximately $8.87 billion. The distribution of 142,000 BTC as part of the repayment plan continues to be closely monitored. These internal transfers are viewed as steps toward completing repayments to creditors.
The moves have sparked significant interest and speculation within the crypto community. Investors are keenly observing how these refunds will impact the broader market given the significant amounts involved.
Read Bitcoin’s [BTC] Price forecast 2024-25
The Total Value Locked (TVL) in Bitcoin reached its highest point in May 2024, surpassing $1.2 billion USD. However, there has been a decline, bringing the TVL down to $699.04 million USD.
Source: DefiLlama
Despite this reduction, Bitcoin remains very active, with 787,506 active addresses registered in the last 24 hours. This level of activity indicates continued strong user engagement and interest in Bitcoin.