Bitcoin‘s price remained relatively stable following the latest significant token transfer by Mt. Gox, the now-defunct Japanese exchange. On Tuesday, Mt. Gox moved approximately $2 billion worth of Bitcoin (BTC), inching closer to completing its $9 billion asset distribution process, which has been a source of concern for investors.
Blockchain analysis from Arkham Intelligence reveals that Mt. Gox-related addresses transferred 47,229 BTC, valued around $3.1 billion, between internal wallets before moving nearly 34,000 BTC, worth $2.3 billion, to new addresses shortly before midnight UTC. Analysts from Arkham suggest that BitGo, one of the final crypto service providers involved in the distribution, was the likely recipient of these funds.
Following these transactions, Mt. Gox wallets now hold approximately $3 billion in BTC, down from $9 billion reported last month.
Historically, significant transfers from Mt. Gox have triggered declines in Bitcoin’s price. However, the recent market response has been muted, indicating that traders might be less concerned about the potential sell-off pressure. Bitcoin initially dropped 0.4% from $66,000 after the transfer during Asian trading hours but later rebounded to around $66,500 by the start of U.S. trading.
The ongoing distribution of Mt. Gox’s $9 billion in Bitcoin, along with a smaller amount of Bitcoin Cash (BCH), has been a persistent concern in the crypto market. Since its collapse in 2014 due to a hack, the exchange’s asset distribution has raised fears that creditors might sell off their holdings to realize gains from a decade of price appreciation. The Mt. Gox trust began distributing assets in July, sending tokens to exchanges like Kraken and Bitstamp for creditors opting for digital assets over fiat currency.
According to a recent Glassnode report, this distribution marks the “final chapter in a major market overhang” for the industry. Glassnode analysts observed only a minor increase in Bitcoin selling on Kraken and Bitstamp following the distribution, suggesting that creditors may be adopting a long-term holding strategy for now.
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