Mt. Gox Conducts Test Transactions With Bitstamp, Indicating Massive Transfers Soon

Mt. Gox has initiated test transfers with Bitstamp cold wallets, sending nominal amounts. It indicates the defunct exchange’s team will send more to the Bitstamp to process repayments to creditors.

Arkham Intelligence identified these transactions and posted on X to let the crypto world know. “Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments.” The blockchain intelligence platform’s X account continued, stating Mt. Gox’s wallet balances, “Mt. Gox currently holds: $6.08B in BTC.”

It owed creditors over $9 billion or about 140,000 bitcoin. With its current balance, Mt. Gox has completed 36% of its repayment obligations. About a week ago, its wallet witnessed transaction volumes of over 190,000 bitcoin, adding tremendous selling pressure. The asset’s price dropped to below $63,000.

Many worry the bitcoin rally over the past few days will be nullified as more repayments occur. The asset’s price is expected to drop as Mt. Gox makes large payments again. However, what worries holders the most is creditors dumping the bitcoin they receive from the repayments, as they have waited a decade to get their hands on these funds. Since bitcoin has grown tremendously since 2014, many will look to take profit as soon as they receive their bitcoin.

Bitcoin analyst Jacob King took to X to post his observations, “Mt. Gox Redemptions have started repaying customers with their #Bitcoin after over a decade! Immediately after this begun, on-chain data showed a hefty increase in selling volume from these wallets.”

Nevertheless, on-chain data reveals that whales are accumulating bitcoin despite the FUD caused by the repayments. Bitcoin’s price has been rising the past week because of varying reasons. The Microsoft outage, caused by a single point of failure, aroused appreciation for decentralized technologies, pushing bitcoin’s price by 5.5% in a day. Institutional interest also caught on, with hundreds of millions flowing into US-based spot ETFs.