Bitcoin Plummets Below $63K as Mt. Gox Moves $2.8 Billion BTC to Internal Wallets

Key Takeaways:

1. Mt. Gox Internal Movements: Mt. Gox moved 44,527 BTC ($2.84 billion) internally, likely for creditor repayments, causing Bitcoin’s price to dip.
2. Market Impact: Bitcoin’s decline to below $63,000 also affected other cryptocurrencies, with Ether (ETH) falling over 2.5%.
3. Kraken’s Role: Kraken confirmed it received funds from Mt. Gox and will distribute them to creditors within the next two weeks.

YEREVAN (CoinChapter.com) — Bitcoin (BTC) faced renewed selling pressure on Tuesday after blockchain data revealed that the defunct exchange Mt. Gox started moving coins internally. This movement is likely for potential repayments to creditors.

The leading cryptocurrency by market value dipped 3%, briefly falling below $63,000. Earlier, it tested the $65,000 mark during the early Asian trading hours, according to CoinDesk. However, it later recovered to $64,571.58, showing a 1.50% increase in value over the day.

This price decline coincided with the initial movement of 0.021 BTC ($1,000) from a Mt. Gox-associated wallet to the blockchain address: 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V.

Mt. Gox Tests Transfer, Then Moves $2.84B BTC for Repayments

This small movement, believed to be a transfer test, was soon followed by a significant movement of 44,527 BTC ($2.84 billion) to an internal wallet. This data, tracked by Arkham Intelligence, highlighted the magnitude of the transfers.

An on-chain sleuth, Lookonchain, suggested that the movement was likely part of the repayment plan for Mt. Gox creditors.

Cryptocurrency exchange Kraken confirmed these repayments, stating it received funds and will distribute them over the next two weeks.

Mt. Gox Begins Repayments, Bitcoin and Ether Prices Drop

Mt. Gox was once the largest Bitcoin exchange globally. However, it went bust in 2014 after losing hundreds of thousands of Bitcoins in a hack. Since then, creditors have been awaiting reimbursements. The exchange began repaying its debt on July 4, leading to fears of mass selling by creditors who have waited for a decade.

Bitcoin’s drop had a ripple effect on the broader market. Ether (ETH), the second-largest digital asset by market value, dipped over 2.5% to $3,400. The CoinDesk 20 Index (CD20), a broader market gauge, fell over 2% to 2,182.

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