Mt. Gox Tests Transfer, Then Moves $2.84B BTC for Repayments, Bitcoin and Ether Prices Drop

YEREVAN (CoinChapter.com) — Bitcoin (BTC) faced renewed selling pressure on Tuesday after blockchain data revealed that the defunct exchange Mt. Gox

Bitcoin (BTC) price dropped on Tuesday after blockchain data showed that defunct cryptocurrency exchange Mt. Gox started moving coins internally, possibly for repaying creditors.

BTC price dipped 3% to briefly fall below the $63,000 level. Earlier, the primary cryptocurrency tested the $65,000 mark during the early Asian trading hours, CoinDesk noted. But it later recovered to trade at $64,571.58, showing a 1.50% gain on the day.

The decline coincided with a small movement of 0.021 BTC ($1,000) from a Mt. Gox-associated wallet to the blockchain address: 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V.

This minor movement, believed to be a transfer test, was quickly followed by a significant transfer of 44,527 BTC ($2.84 billion) to an internal wallet, data tracked by Arkham Intelligence showed.

An on-chain sleuth, Lookonchain, suggested that the transfer was likely part of the repayment plan for Mt. Gox creditors.

Cryptocurrency exchange Kraken confirmed these repayments, adding that it received funds and will distribute them over the next two weeks.

Mt. Gox was once the world’s largest Bitcoin exchange, but it went bust in 2014 after losing hundreds of thousands of Bitcoins in a hack. Creditors have been waiting to be reimbursed ever since. The exchange began repaying its debt on July 4, sparking concerns that creditors who have waited a decade will now sell en masse.

Bitcoin’s drop had a ripple effect on the broader market. Ether (ETH), the second-largest digital asset by market value, dipped over 2.5% to $3,400. The CoinDesk 20 Index (CD20), a broader market gauge, fell over 2% to 2,182.

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