Defunct crypto exchange Mt. Gox is getting ready to distribute $5.35 billion worth of Bitcoin to its creditors and is currently running test transactions.
After transferring nearly 50,000 Bitcoins over the past two weeks through Kraken and Bitstamp, Mt. Gox plans to move the remaining 80,500 Bitcoins. This news comes as Bitcoin struggles to break through the $70,000 resistance level, causing its price to dip.
Mt. Gox Prepares Final Bitcoin Distributions as BTC Faces Pressure
According to Arkham Intelligence data, a Mt. Gox address (12Rgp) has recently conducted test transfers, moving 0.02 BTC (worth $1,350) to an address starting with 1Adb and 0.0001 BTC to an address beginning with bc1q. This indicates that Mt. Gox is preparing for the large-scale transfer of its remaining 80,128 BTC, valued at $5.35 billion.
In the past two weeks, Mt. Gox has already sent the first batch of Bitcoins to creditors through Kraken and Bitstamp. Although creditors experienced some withdrawal issues last week, these problems have largely been resolved. After nearly a decade of waiting since the exchange’s collapse, Mt. Gox is nearing the end of its creditor distribution process. This final distribution could provide a significant psychological boost to the crypto industry, which has been dealing with the Mt. Gox fallout for years.
Meanwhile, Mt. Gox creditors appear determined to hold onto their Bitcoin despite market volatility. While Bitcoin has managed to absorb much of the selling pressure, it faced renewed selling pressure late Monday after struggling to break through the $70,000 resistance level.
Bitcoin Price Slips Below $66,500 Amid Market Developments
As of the latest update, Bitcoin’s price has dropped by over 4%, falling below $66,500. Following a recent surge above $70,000, market analysts like PlanB had forecasted that Bitcoin could potentially rally to $150,000 by the end of the year.
A contributing factor to the current selling pressure is the US government’s transfer of 29,800 BTC from the Silk Road case. This move follows President Donald Trump’s proposal to make Bitcoin a strategic reserve asset for the US.
Looking ahead, this week鈥檚 focus will be on the US Federal Reserve meeting, where Chairman Jerome Powell is expected to address inflation and discuss potential rate cuts.
From a technical perspective, as long as Bitcoin remains above $65,800, the downside appears limited, with analysts anticipating a possible rebound to $68,000.
Important:聽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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