Mt. Gox, the defunct Japanese crypto exchange, has made headlines by transferring 47,229 Bitcoin, valued at $2.71 billion, to a new wallet. This significant move marks the exchange’s first major transaction since May, according to blockchain analytics platform Arkham Intelligence. The Bitcoin was moved from cold storage at 12:30 am UTC on July 5.
This transfer comes as Mt. Gox prepares to start repaying its creditors this month. The exchange plans to return a total of $8.5 billion worth of Bitcoin to creditors, following a statement on June 24 from trustee Nobuaki Kobayashi, confirming all steps for repayment had been completed.
Market analysts have expressed concerns about the potential market impact of such a large volume of Bitcoin being sold. The fear is that creditors might offload their holdings, which have been locked away for over a decade. However, some experts believe the actual amount that might flood the market is closer to $4.5 billion.
Alex Thorn, head of research at Galaxy Digital, suggested many creditors could hold onto their Bitcoin longer than expected. He also highlighted the potential adverse tax implications for those selling large amounts quickly.
This isn’t the first massive Bitcoin move from Mt. Gox this year. On May 28, the exchange transferred nearly $7.3 billion worth of Bitcoin to an unknown wallet, causing a 2% dip in Bitcoin’s price.
Following the latest transfer, Bitcoin’s price fell sharply on July 4 and continued to decline, currently trading at $57,226 according to TradingView. Despite this recent drop, Bitcoin remains up 35.6% year-to-date but is down 6.9% for the week.
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