On August 21, the bankrupt Mt. Gox Exchange sent out 13,265 BTC, worth about $784 million, according to Arkham Intelligence.
Out of this amount, 12,000 BTC were sent to a new address, and 1,265 BTC went into a cold wallet linked to Mt. Gox Exchange. This was the first large transfer of Bitcoin from the exchange’s trustee in almost three weeks.
Mt. Gox Exchange still holds around 46,164 BTC, valued at $2.74 billion. In July, the exchange began returning Bitcoin to its creditors as part of a court order. During that time, they sent out 44,527 BTC, worth about $2.84 billion. This caused Bitcoin’s price to drop by 3%, with its value decreasing by $2,000 within hours.
Mt. Gox Exchange, one of the first Bitcoin exchanges, went bankrupt after a major hack in 2014, which resulted in the theft of 850,000 BTC, worth about $460 million at that time.
See Also: Mt Gox Exchange Has Made Huge Bitcoin Transfers To An Unknown Crypto Wallet
Effect of The MT. Gox Exchange Transfers on The Market
This latest action from Mt. Gox seems to have caused worry in the market, leading to a 3% drop in Bitcoin’s price over the last 12 hours, pushing it below $60,000 again.
Currently, Bitcoin is trading at $59,500 according to CoinGecko. However, some experts note that the market has remained stable despite this selling.
An analyst called “PlanB” pointed out that with the recent Bitcoin transfers from Mt. Gox, along with large sales from the German and U.S. governments and Bitcoin miners, the market could be nearing a turning point.
He also mentioned that a large cash payout of $12.7 billion from FTX is expected in the fourth quarter, which might lead to a strong market rise.
As Bitcoin’s price has fallen, the overall crypto market has also declined, with the total market value dropping 2.3% in the past 24 hours. This shows that other cryptocurrencies, known as altcoins, are also facing difficulties. The total market value is now $2.19 trillion.
Ethereum, the second-largest cryptocurrency, also saw a similar drop. It reached a high of $2,700 during the day but then faced resistance and dropped to around $2,590.
Most altcoins are also experiencing losses. However, a few exceptions stand out. Tron (TRX) gained 11% after winning a court case against the SEC this week, and Avalanche (AVAX) saw a 4.5% increase, standing out in an otherwise falling market.
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