Bitcoin [BTC] saw a notable 1.30% drop in value after significant activity from the defunct cryptocurrency exchange Mt.Gox. Arkham Intelligence reported that Mount Gox transferred more than $2.9 billion worth of BTC from its cold wallets to an unknown address. This transfer marks the first asset move by Mount Gox in five years.
According to the network, Mt. Gox moved a total of 42,830 BTC across multiple transactions. These transactions mainly took place between 1:41 AM and 2:54 AM UTC, involving 21 transfers, most of which moved 2,000 BTC each. Additionally, at 04:11 UTC, a significant transfer of 32,137 BTC took place, all to a single, unlabeled address.
This sudden move in assets has sparked interest in the cryptocurrency community, especially since Mount Gox still has approximately 138,000 BTC, worth over $9.36 billion, in its identified portfolios.
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Market reaction
The Bitcoin market responded quickly. The price of the cryptocurrency fell by approximately 1.30% from $69,374, at the time of the first transfer, to $67,875. This decline comes as Bitcoin struggles to surpass the $70,000 resistance level despite several bullish attempts. The price of the King Coin has been consolidating within the $65,000-$70,000 range for some time. The market's reaction to Mount Gox's large BTC transfer highlights Bitcoin's price sensitivity to significant movements of dormant assets, especially from high-gain portfolios.
Looking back
Mount Gox, once the largest Bitcoin exchange in the world, collapsed in 20214 after a massive hack resulted in the loss of 850,000 BTC. The exchange has since been embroiled in legal battles and refund plans for affected users. In September 2023, Mt's trustee, Gox announced a 12-month extension to the repayment deadline, which is now set for October 31, 2024.
The recent moves have led to speculation about the motives behind the transfer. The trust office Nagashima Ohno and Tsunematsu has not yet commented on the destination or purchase of the transferred Bitcoin.
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