Bitcoin’s price dipped below $66,000 after news emerged about a multi-billion dollar transfer from the defunct crypto exchange Mt. Gox.
On Tuesday, July 30, the Mt. Gox estate moved nearly 34,000 Bitcoin (BTC) — worth around $2.25 billion — to a new wallet. This suggests the exchange might be repaying creditors after its 2014 shutdown.
Data from Arkham Intelligence shows Mt. Gox moved 33,963 BTC to a fresh wallet, where the funds still sit as of press time. It’s unclear if the BTC was moved to an exchange or reallocated within its own wallets.
Bitcoin’s price reactions to Mt. Gox moves
Speculators are keen to see how these transfers will impact Bitcoin’s price, especially comparing it to the July sell-off of confiscated BTC by the German government, which sent prices below $55,000.
Preliminary indicators suggest limited sell-side pressure. Glassnode’s July 29 report reveals that out of the 142,000 BTC from Mt. Gox, around 59,000 BTC have already been distributed to creditors via Kraken and Bitstamp. Despite these movements, Bitcoin’s price remains above $60,000, indicating a relatively contained market impact.
Glassnode notes a decline in Bitcoin held by new investors, with long-term holders now controlling about 45% of the network’s wealth. This suggests a shift towards holding rather than selling. Nonetheless, Mt. Gox still holds over $5.3 billion worth of BTC, according to Arkham Intelligence, meaning the distribution of funds could continue for weeks or even months.
