The defunct cryptocurrency exchange Mt. Gox is now planning to transfer its remaining 80.5K Bitcoins following the ongoing Bitcoin struggle to breach the $70,000 level. In the past two weeks, the exchange has already sent nearly 50K Bitcoins to creditors via Kraken and Bitstamp. While some creditors experienced withdrawal issues last week, these have been predominantly resolved.
Mt. Gox and U.S. Government Transfers Increase Pressure on Bitcoin
Data from Arkham Intelligence reveals that the bankrupt Tokyo-based bitcoin exchange, Mt. Gox, address labelled 12Rgp, transferred 0.02 BTC, worth roughly $1,350, to an address that starts with 1Adb. Additionally, the same address transferred 0.0001 BTC to another beginning with bc1q, indicating that Mt. Gox is conducting test transfers prior to moving its remaining 80,128 BTC, valued at $5.35 billion. The creditors seem intent on holding onto their BTC despite the volatility; Bitcoin’s price appears to be absorbing a significant portion of the selling pressure. However, BTC again faced selling pressure late Monday after hitting resistance near $70,000.
Following the breach of the $70,000 mark, renowned market analyst PlanB suggested that Bitcoin’s price could potentially rally to $150K by the end of the year. PlanB also anticipates that BTC could double in value within the next 3-5 months.
U.S. Government Bitcoin Transfers
Another contributing factor to the selling pressure is the recent transfer of Bitcoin by the U.S. government. Arkham Intelligence reports that the government moved 29,799.99 BTC, valued at $2 billion, to an unknown P2WPKH wallet. Despite this transfer, the government still holds a significant 183,439 BTC, worth over $12 billion.
This development coincides with Donald Trump’s strategy to retain all of the Bitcoin that the U.S. government currently holds or acquires in the future, should he be re-elected. However, the latest U.S. BTC transfer has fueled speculation about an impending major sell-off, as signalled by economist Peter Schiff in the latest tweet.
The exchange has conducted a series of Bitcoin transfers totalling approximately $5.52 billion. After initial test transactions, it transferred Bitcoin worth $2.85 billion to an undisclosed wallet and another $2.47 billion from a cold storage wallet to an unknown address while reallocating some Bitcoin between cold wallets.
Analysts Weigh In on BTC Future
From a technical perspective, analysts predict that if Bitcoin holds the $65,800 level, it could rebound to either $67,400 or $68,100. Additionally, this week will see a U.S. Federal Reserve meeting where Chairman Jerome Powell will address inflation and discuss plans for potential rate cuts.
Bankrupt exchange Mt. Gox is set to distribute its remaining holdings of 80.5K Bitcoin to creditors and investors, coinciding with Bitcoin’s challenges in exceeding the $70,000 threshold.
Despite this substantial event, the crypto market is expected to remain relatively stable, driven by positive investor sentiment around potential ether ETFs and the approaching U.S. presidential election.
In summary, Mt. Gox has recently finished initial Bitcoin distributions to creditors through Kraken and Bitstamp, resolving earlier withdrawal challenges. The exchange has successfully executed several Bitcoin transfers amounting to about $5.52 billion total, including a $2.85 billion transfer to an unspecified wallet. Another $2.47 billion was relocated from a cold storage wallet, with additional internal movements of Bitcoin between cold wallets.
The Mt. Gox BTC transfer is a notable occurrence that has the potential to affect Bitcoin’s price, in addition to the general sentiment of the market in the short and medium term. When the world prepares for this transfer, the cyclicality of the crypto market will be challenged After all. The attitudes of the investors, analysts, and market speculators will definitely influence the evolution of the Bitcoin landscape and corresponding assets. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
