Bitcoin sagged amid BTC transfer by bankrupt Mt. Gox
Bankrupt Mt. Gox begins payment procedures. This is indicated by blockchain metrics that did not pass the attention of analysts. On May 28, Mt. Gox moved 42,900 BTC (approximately $2.9 billion) between wallets. While that amount could be as high as $6 billion.
Analyst James Check remarked that the unfolding Mt. Gox scenario would serve as an exemplary illustration of the effectiveness of on-chain analysis for Bitcoin.
Finally, Mt Gox distributions appear to be underway.
Around 42.9k $BTC on the move as we speak, worth around $2.94B
Congrats to the creditors, it must be a relief and a half to get these coins back. What a saga. https://t.co/HQCYGhloo9 pic.twitter.com/O8nRqfQwn6
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 28, 2024
Distributions from Mt.Gox
Shortly thereafter, LookOnChain disclosed that Mt. Gox was still in possession of 95,061 BTC, equating to around $6.53 billion.
Crypto Crib broadcasted an alert on X, revealing that approximately $6 billion in BTC was being shifted.
🚨Mt.Gox have just transferred over $6B of BTC 👀 pic.twitter.com/fNO59URWJ0
— Crypto Crib (@Crypto_Crib_) May 28, 2024
This significant transfer of Bitcoin is seen as Mt. Gox gearing up to redistribute its BTC reserves to creditors ahead of the October 31 settlement deadline, which is over nine years since the exchange's downfall in 2014.
The exchange faced bankruptcy following a massive hack that resulted in the loss of 850,000 BTC, worth $460 million at that period.
In February 2023, the primary creditors of the defunct cryptocurrency exchange opted for a payout scheme allowing them to receive a substantial part of their owed sums in BTC instead of fiat currency.
Market analysts had previously cautioned that moving the Bitcoins from the Mt. Gox era could unsettle the market and exert downward pressure on BTC's price.
This seemed to manifest in the Asian trading markets on Tuesday morning, as the crypto markets plunged 2.7%, dropping the total market capitalization to $2.68 trillion.
Bitcoin Dips 4%
During the Tuesday morning trade in Asia, Bitcoin's value dipped by 4%, descending from a daily peak of $70,600 to $67,555 within 12 hours.
It saw a slight recovery, trading at $67,791 at the moment of this writing and maintaining its position within a months-long range of fluctuation.
Yet, it's uncertain if prices will experience further declines, especially if creditors opt to instantly sell off their received funds.
Market trader “Bleeding Crypto” is keeping an eye on key technical support levels at $65,000 and $61,450.
$BTC As MtGox address is staging funds, I am looking for 2 local areas to hold as support. 1st the 50EMA on the daily TF and if not then the reload Fib Zone. God help us if neither one holds…… Then its going to get UGLY. Its never a boring day in crypto! pic.twitter.com/g4DqChb5Bd
— Bleeding Crypto (@Bleeding_Crypto) May 28, 2024
