The transfer of 138,000 BTC between Mt. Gox’s trustee addresses does not indicate the start of creditor repayments. According to analysts at CryptoQuant, recent bitcoin (BTC) movements by Mt. Gox are not a concern and won’t immediately affect bitcoin prices.
The transfers involved Mt. Gox’s trustee addresses and do not indicate the start of repayments to creditors, as per the latest weekly report from the analytics firm.
Mt. Gox Bitcoin Transfers Spark Speculation and Market Concerns
On May 27, on-chain analysts observed a significant movement of 138,000 BTC, valued around $9.4 billion at the time’s bitcoin price, from wallets where they had been held since 2018. According to CryptoQuant, these transfers occurred within five hours, raising concerns within the cryptocurrency community about their potential impact.
The cryptocurrencies were transferred through seven separate transactions, with volumes ranging from 4,000 to 32,000 BTC each. Initially consolidated into a single address, the funds were subsequently distributed across three different addresses. As of the latest update, each of these addresses held 47,400 BTC.
Many in the crypto community speculated that these transfers signaled the beginning of distributions to Mt. Gox creditors. Following the news, BTC experienced a 4% decline in value. Concerns were also voiced about the possibility of further price drops if creditors opted to sell their assets immediately upon receiving them.
Contrary to widespread belief, the new addresses receiving the bitcoins actually belong to Mt. Gox’s Rehabilitation Trustee, who manages the process of repaying creditors.
Mt. Gox BTC Transfers: No Immediate Sell Pressure Expected
On May 28, an announcement clarified that Mt. Gox has not yet initiated repayments to creditors nor has it sold any BTC or cryptocurrencies for that purpose.
According to CryptoQuant analysts, the recent transfers, where a significant amount of Bitcoin was consolidated from multiple addresses into a few, appear to be a precursor to the Trustee beginning repayments under the Rehabilitation Plan. However, the exact timeline for these repayments to commence remains uncertain.
As a result, CryptoQuant believes these transactions will not immediately create selling pressure for BTC, as the transferred assets are not yet available for trading on the open market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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