Beleaguered Bitcoin Exchange Mt. Gox Continues Liquidating Assets as Market Sentiment Turns Bearish
- WBOYOriginal
- 2024-08-21 18:38:15972browse
The beleaguered exchange, once the dominant force in Bitcoin trading, has been gradually liquidating its remaining assets as part of a lengthy repayment plan to creditors.
Beleaguered crypto exchange Mt. Gox has moved 13,265 BTC ($784 million), continuing its lengthy repayment plan to creditors.
The new transfer, detected by Arkham data, involved sending 12,000 BTC to a new address (“1PuQB…nWhTb”) on Tuesday, while the remaining 200 BTC were directed to a known Mt. Gox cold wallet.
This latest move follows a smaller transfer of 15,000 BTC, valued at roughly $880 million, on February 14. Last week, the exchange also shifted $2 billion worth of Bitcoin to a wallet belonging to crypto custody platform BitGo, ultimately bound for creditors.
The exchange's sustained offloading of Bitcoin has been impacting the market, with the selling pressure increasing as the exchange's remaining BTC holdings dwindle.
Mt. Gox, once the dominant force in the Bitcoin trading scene, deriving its name from "Magic: The Gathering Online EXchange" as it began as a trading platform for the collectible card game, was responsible for over 70% of BTC transactions in 2014.
However, the platform suffered a hack that year, losing 850,000 BTC in the incident. Creditors began receiving repayments a decade later in July 2024 through Kraken and Bitstamp. A few days later, Mt. Gox shifted another $$2.19 billion of Bitcoin to address bc1q26. Mt. Gox addresses now hold 46,000 BTC, down from 141,000 BTC.
The timing of these transfers coincides with a period of growing bearish sentiment in the crypto market. As investors express concerns about macroeconomic factors and the potential for further price corrections, the added selling pressure from Mt. Gox has contributed to the downward trend in digital asset prices.
However, as Mt. Gox continues its creditor repayments, the market is expected to gradually adjust to the selling pressure. While the exchange's actions may create temporary volatility, the overall trajectory of the crypto market remains tied to broader macroeconomic factors and technological developments.
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