Bitcoin (BTC) encountered renewed selling pressure on Tuesday, triggered by blockchain data indicating that the defunct exchange Mt. Gox had started internal transactions that could be related to repayment to some of its creditors. The number one digital currency fluctuated and was down as low as 3% to trade below $63,000, although touching $65,000 during the early Asian trading session.
Also Read: Mt. Gox Transfers $24 Bitcoin to Activate Wallet Ahead of Customer Repayments
Significant Movements from Mt. Gox Wallets
It is quite clear that the fall in the value of Bitcoin correlated with the movement of a wallet related to Mt. Gox. First, a slight motion of 0.021 BTC ($1,000) was detected which can be considered as a test transaction sent to the blockchain address 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V. This transfer was then succeeded by a massive transfer of 44,527 BTC ($2.84 billion) to an internal wallet. As on-chain investigator Lookonchain suggested, this is possibly part of the repayment plan. The exchange started repaying its creditors on July 4 igniting fears throughout the market of a possible price crash to $45k as a result of receivers quickly selling off their repayments after waiting a decade for it.
Mt. Gox Repayment Plan Raises Concerns
The large internal trades by Mt. Gox have sparked renewed fears in the market. This activity considered a tactic for repaying, has sparked widespread selling by creditors who have been expecting their reimbursement since 2014. These movements occurred when the Bitcoin price was low, which shows that these transactions may affect the cost of Bitcoin.
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Conclusion
The internal movements of Bitcoin by Mt. Gox have sparked renewed selling pressure, causing a notable dip in the cryptocurrency’s value. This activity, seen as part of a repayment strategy, has raised fears of mass selling by long-awaiting creditors. As the repayment continues, market participants remain vigilant about the potential impacts on Bitcoin and other cryptocurrencies.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.