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What is happening to the crypto market? ⋆ ZyCrypto
Mt. Gox, a defunct crypto exchange, was spotted moving $9.62 billion worth of Bitcoin in a new wallet. This action raised hopes among its creditors of potential repayments.
The transfer saw 141,686 Bitcoins transferred into the “1Jbez” wallet from various cold wallets linked to the exchange. Additionally, this is Mt. Gox’s first cash transfer in over five years, following its plan to repay its creditors by the end of October 2024.
Anndy Lian, blockchain expert and author of “NFT: From Zero to Hero,” noted that this large transfer likely indicates Mt. Gox’s intention to reimburse its users. Lian stressed that the move is also part of the exchange’s strategy to repay creditors before the promised deadline of October 31, 2024.
Meanwhile, Mt. Gox Rehabilitation Administrator Nobuaki Kobayashi confirmed that the consolidation was part of the scholarship’s repayment plans. In a May 28 announcement, Kobayashi said the Rehabilitation Trustee was preparing to repay the portion of cryptocurrency claims allocated for repayment. He also asked creditors to remain patient, hinting at potential delays beyond the original September 2023 deadline.
For the past ten years, creditors have been hoping for repayment of Mt. Gox’s outstanding debt amounting to $9.4 billion in BTC. The exchange was once a major player in cryptocurrency, facilitating more than 70% of all transactions in Bitcoin’s early days. However, Mount Gox collapsed in 2014 following a series of hacks.
Potential Impact on Mt. Gox Bitcoin Transfer Market Analyzed by CryptoQuant
In reaction to this development, on-chain analytics firm CryptoQuant analyzed its potential impact on the crypto market. CryptoQuant reported that the Mt. Gox Rehabilitation Trustee moved 138,000 Bitcoins in seven transactions, ranging from 4,000 to 32,000.
Internal transfers within fiduciary-controlled addresses have not impacted the Bitcoin market. Nonetheless, the analytics firm noted that the eventual repayment to creditors, expected by October 31, 2024, could influence market dynamics.
Furthermore, CryptoQuant emphasized that the impact on the market will depend on the timing, size and terms of these reimbursements. If the trustee begins paying off creditors, it could introduce a significant amount of Bitcoin into the market, affecting liquidity and price stability. The company concluded that there was no immediate solution selling pressure of these movements since the transfers have not yet reached the open market.