Key Points
- A crypto wallet linked to Mt. Gox’s trustee initiated a test transaction involving $2 billion worth of Bitcoin.
- The ongoing distribution of Mt. Gox’s remaining assets has sparked concerns about potential sell-offs and market volatility.
A recent report by blockchain analytics company Arkham Intelligence revealed a test transaction involving $2 billion worth of Bitcoin (BTC) was initiated by a crypto wallet associated with the trustee of the defunct Mt. Gox exchange.
Preparation for Distribution of Funds
This action follows the recent transfer of $3.1 billion in BTC to BitGo, indicating possible preparations for the long-awaited distribution of funds to creditors. Arkham analysts suggest BitGo is likely the recipient of these transactions due to its role as a key distribution partner responsible for managing the complex process of returning funds to Mt. Gox creditors.
The test transaction was initiated after the transfer of 33,100 BTC, valued at $2.2 billion, from a Mt. Gox cold wallet holding creditors’ assets. This move highlights the ongoing efforts to prepare for the distribution of funds.
The Mt. Gox Saga
The ongoing distribution of Mt. Gox’s remaining 140,000 BTC and Bitcoin Cash (BCH) to creditors has led to concerns in the cryptocurrency market, particularly regarding potential sell-offs by long-waiting creditors. This event has already impacted Bitcoin prices, causing them to dip below $54,000 when distributions began in early July.
With 46,000 BTC still held in Mt. Gox addresses, the continued release of these funds through authorized exchanges like Bitbank, BitGo, and Kraken could lead to more market volatility. This largely depends on how creditors decide to manage their assets.
Despite fears of potential selling pressure, Bitcoin has shown resilience. It was trading at $61,284 at press time, following a 4.61% hike in the last 24 hours. This price stability can be seen as an indication of strong market sentiment, especially given that 82.21% of BTC addresses are currently “in the money,” with their holdings valued above the purchase price. Conversely, only 13.41% of addresses are “out of the money,” suggesting limited downside pressure in the market.
