Bitcoin Price Slides 4% as Mt Gox Distributions Begin With Big BTC Move
On May 28, on-chain analysts observed that Mt. Gox distributions appeared to be underway. Around 42,900 BTC worth around $2.9 billion was being moved at the time though there could be as much as $6 billion worth.
Analyst James Check said that the Mt. Gox event is going to be “a fantastic case study for why on-chain data works so well 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
Mt. Gox Distributions
A couple of hours later, LookOnChain reported that Mt. Gox still holds 95,061 BTC worth around $6.53 billion.
Crypto Crib posted an update to X stating that around $6 billion worth of BTC was on the move.
Mt.Gox have just transferred over $6B of BTC
pic.twitter.com/fNO59URWJ0
— Crypto Crib (@Crypto_Crib_) May 28, 2024
The big Bitcoin move is seen as Mt. Gox preparing to return its BTC holdings to creditors before the October 31 repayment deadline, over nine years after the exchange collapsed in 2014.
The company became insolvent after a devastating hack that led to the theft of 850,000 BTC, valued at $460 million at the time of the incident.
In February 2023, the largest creditors of the bankrupt crypto exchange chose a payment option that would allow them to receive a lump sum of their recovery payout in BTC rather than fiat.
Analysts had previously warned that transferring the Mt. Gox-era Bitcoin could spook the market and put downward price pressure on BTC.
This appears to be happening in Asian trading on Tuesday morning as crypto markets tanked 2.7%, with total capitalization falling to $2.68 trillion.
BTC Slides 4%
Bitcoin prices fell 4% from an intraday high of $70,600 to bottom out at $67,555 around 12 hours later during the Tuesday morning Asian trading session.
It had recovered marginally to trade at $67,844 at the time of writing and was within its multi-month range-bound channel.
However, it remains to be seen whether prices will fall further if creditors decide to liquidate their assets when they receive them instantly.
Trader “Bleeding Crypto” said he was eyeing 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
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