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In summary
- Mt. Gox transferred 6,620 BTC valued at $352.7 million to an unknown wallet.
- The price of Bitcoin remained stable between $97,000 and $98,000 after the transaction.
- Postponements in refunds reduced selling pressure and the impact on the market.
An address containing a large amount of Bitcoin owned by the defunct Cryptocurrency exchange Mt. Gox recently moved a significant amount of funds.
Approximately seven hours before press time, about 6,620 BTC worth approximately $352.7 million were transferred from a Mt. Gox address to an unknown wallet, according to data provided by Blockchain intelligence service Arkham Intelligence. Data shows that the exchange is at a high level of activity after yesterday’s reports of another Bitcoin transaction valued at $2.8 billion.
Market data shows that the price of Bitcoin has not reacted to the transfer in an obvious way, trading sideways between $97,000 and $98,000 after the event. At the time of writing, BTC is trading 4.8% lower than this time yesterday, according to data from CoinGecko.
“Typically, Mt. Gox announcements have a negative impact on the market, often causing the price of Bitcoin to decline,” notes Min Jung, analyst and researcher at Presto Labs, who told Decrypt earlier this week about the transfer. bigger.
The reduced impact of the Mt. Gox transactions is likely attributed to bullish market sentiment and a recent announcement by the Mt. Gox redistribution team postponing repayment to creditors for one year. This means that, until then, no transaction by Mt. Gox will result in an immediate increase in selling pressure on Bitcoin or Bitcoin Cash.
Obchakevich Research founder Alex Obchakevich told Decrypt that another reason may be that “the market is maturing every year” and capitalization and trading volumes are increasing by billions with liquidity “growing incredibly fast.”
Therefore, he argued that “$353 million no longer affects market volatility much.”
Mt. Gox is short for “Magic: The Gathering Online eXchange”, the name given to the exchange when it was still trading trading cards at its launch in 2010, before Bitcoin was introduced to the platform. After the service pivoted to Bitcoin, it captured almost the entire market and became the most popular way to buy and sell the world’s first cryptocurrency online.
Mt. Gox lost almost 750,000 BTC owned by its customers and 100,000 BTC of its own, as a result of a hack in 2014. This amount of Bitcoin was equivalent to approximately 7% of all Bitcoin in circulation at the time.
That is why in the past, news about the repayment of Mt. Gox creditors has had a lot of influence on market sentiment. Data from Arkham Intelligence shows that at the time of publication, the exchange’s wallets still contain 39,705 BTC worth close to $3.9 billion.
Edited by Stacy Elliott.
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