On December 5, the defunct crypto exchange Mt. Gox made headlines by transferring over 24,000 Bitcoin — valued at nearly $2.5 billion — to an unidentified address. This significant move occurred shortly after Bitcoin achieved a landmark price of $100,000.
Data from Arkham Intelligence reveals that Mt. Gox transferred 24,051 Bitcoin to an address starting with “1N7j” at precisely 2:45 am UTC. This address had no prior transaction history. The transfer marks the exchange’s first activity since November 12.
The timing of the move was noteworthy: it took place just 12 minutes after Bitcoin broke past the $100,000 threshold and only minutes before BTC peaked at $104,000 on Coinbase at 3:08 am UTC, according to TradingView data.
Why the Transfer?
Mt. Gox, which declared bankruptcy in 2014, has yet to clarify the reasons behind this large-scale Bitcoin transfer. Historically, similar actions by the exchange have been linked to preparations for creditor repayments.
Such transactions often create bearish sentiment in the market, as they may signal the release of significant Bitcoin quantities into circulation, potentially increasing selling pressure. However, market analysts suggest this concern might be overblown, as many traders have long anticipated these moves and factored them into their strategies.
Creditor Perspectives
Mt. Gox creditors have the option to receive payouts in Bitcoin, and a survey on Reddit earlier this year indicated that a majority of creditors were not planning to sell their holdings immediately. This aligns with the notion that many long-term holders might view these payouts as an opportunity to retain their positions in Bitcoin.
Repayment Timeline Extended
In October, the trustee overseeing Mt. Gox’s assets extended the repayment deadline by another year, pushing it to October 31, 2025. The extension was attributed to delays in completing the necessary procedures for distributing repayments, leaving many creditors still waiting for their funds.
Remaining Holdings
Even after this recent transfer, Mt. Gox retains a substantial balance of 39,878 Bitcoin, valued at approximately $4.1 billion as of now, according to Arkham Intelligence. This large reserve remains a critical element of the Bitcoin market narrative, given its potential impact on future price movements.
While the latest activity has stirred speculation, its long-term effect on Bitcoin’s price remains uncertain, as the market continues to digest this historic milestone.
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