Markets
Is the cryptocurrency market facing a massive sell-off?
Mt. Gox Transfers $2.7 Billion From $BTC to a new wallet! The move, involving $47,229 BTC, is part of preparations for creditor repayments, with test transactions to ensure a smooth process. Analysts are speculating on the market impacts. Bitcoin’s price temporarily fell below $58,000 as the double whammy of the German government’s wallet sale and the start of Mt Gox repayments caused market volatility.
But will this cause Bitcoin and the broader market to crash?
And it began….
On July 4, 2024, defunct cryptocurrency exchange Mt Gox made a substantial transfer of approximately 47,229 BTC, valued at approximately $2.71 billion, from its cold storage to a new wallet address. Data from Arkham Intelligence shows this. transactionThe filing, which took place at 00:30 UTC on July 5, is part of preparations for the upcoming $9 billion repayment of the stock market to creditors.
Earlier in the day, Mt Gox had made several small bitcoin transactions, the largest of which was just $24 worth of BTC. The exchange, which collapsed in 2014 after a massive security breach that resulted in the loss of around 850,000 BTC, announced in late June that it would begin distributing funds to creditors in early July.
What will happen to the BTC price after Mt. Gox refunds?
Although it is too early to analyze the real impact of cryptocurrency, unlike the German Government According to reports, this refund has been planned for a long time. There has been a lot of confusion over how much people will receive, with Reuters and the BBC wrongly estimating that traders will only receive a tiny fraction of their original BTC.
Token holders on Reddit have confirmed that while they won’t get the full amount they lost back, the refunds will still be substantial and worth much more than they were worth at the time of the hack. This creates the potential for significant selling pressure.
Expert perspective on market impact
According to Nobuaki Kobayashi, a trustee of Mt. Gox, the not The repayment deadlines have been met. This large payment is expected to introduce significant selling pressure into the market, as BTC Markets crypto analyst Rachael Lucas noted.
Despite some concerns from market commentators about a potential sell-off, other analysts suggest that the actual amount of Bitcoin likely to be sold could be closer to $4.5 billion.
Current Market Overview
Bitcoin Price Market pressure was felt shortly after the news broke, with the cryptocurrency currently trading around $56,994. This represents a 5.54% drop in the last 24 hours and 18.7% drop in the last 30 days.
In a later update, Arkham Intelligence reported that the new wallet address sent 2,702 BTC ($154.7 million) back to Mt Gox cold storage and transferred 44,527 BTC to another address starting with “16ArP.”
Learn more about this: Mt. Gox is set to deliver a 9,900% return on investment