In a significant move that has sent ripples through the cryptocurrency market, defunct crypto exchange Mt. Gox has transferred over 32,000 BTC, worth around $2.2 billion at current rates, to unmarked wallet addresses. This move, according to data from Arkham, is the largest transfer in months and is seen as a precursor to future sales by the exchange.
The transferred bitcoin was moved to two main addresses: “1FG2C…Rveoy” received nearly 30,400 BTC, while “15gNR…a8Aok” received 2,000 BTC after the initial transfer to a Mt. Gox cold wallet. Such transfers are typically seen as a consolidation of holdings to new addresses before they are sent to cryptocurrency exchanges, where the bitcoin is then sold on the open market.
This move coincided with a drop in Bitcoin prices early Tuesday, as BTC slid to under $68,000, marking a 2% decrease in the past 24 hours. This influenced a broader market slide just ahead of the U.S. elections, which are due in U.S. morning hours. Market watchers are bracing for increased volatility this week, with potential price swings of up to $8,000.
The Mt. Gox transfer is part of an ongoing repayment plan that has been in the works for several years. The plan was given a deadline of October 2024 by a Tokyo court last year. However, in a recent development, the repayment deadline has been extended by another year to October 31, 2025.
Mt. Gox was once the world’s top crypto exchange, handling over 70% of all bitcoin transactions in its early years. However, in early 2014, the exchange was hit by a massive hack, leading to the loss of an estimated 740,000 bitcoin – a value of over $15 billion at current prices. The hack was the largest of several attacks on the exchange between 2010-13.
The repayment plan is largely seen by traders as adding selling pressure to bitcoin markets. Early investors who will receive assets at a much higher value than their initial investment before 2013 are likely to sell at least part of their holdings. This, combined with the looming U.S. elections and the recent transfer of a substantial amount of bitcoin, spells a period of uncertainty and volatility for the market.
