The defunct exchange Mt. Gox transferred massive amounts of BTC to its internal wallets and an unknown wallet, forcing BTC’s price to drop below $63,000 on July 16, marking a 3% dip. BTC rallied close to $65,000 prior. With creditors awaiting repayments through chosen exchanges, Mt. Gox is seemingly preparing to transfer asset bulks to them, bifurcating funds in multiple wallets, according to data provided by Arkham Intelligence.
Its main wallet observed transaction volumes of over 190,000 BTC, worth $12 billion, with over 140,000 BTC, worth close to $9 billion, transferred to other internal wallets. 46,641 BTC, worth $3 billion, was sent to an unknown address, 3JQieEzccKjFS34oW8KZSGBDndiH1YyFrE. However, it could also be an unidentified Mt. Gox wallet. The main wallet still holds $8.83 billion, amounting to 138,985 BTC.
This repayment process can cause BTC to dip further when the assets flow to chosen exchanges that will further direct it to Mt. Gox creditors. Those exchanges include Bitbank, Bitstamp, Kraken, BitGo, and SBI VC Trade, a Japanese counterpart. Many expect strong price downturns to occur when the repayments hit creditor wallets from the exchanges. They are believed to offload large shares to capitalize on the price difference between BTC when Mt. Gox went down and now.
Regardless, some analysts are optimistic. They feel the price drops experienced by BTC over the past month were the market’s reaction to Mt. Gox’s repayment news. With its value corrected and the market accustomed to the reimbursements, BTC may retrace to hit new highs again, as it was over a month ago.
Time will tell as funds move to creditors’ wallets. The defunct exchange’s Rehabilitation Trustee, Nobuaki Kobayashi, has assured prompt repayments right after Mt. Gox and the exchanges it has partnered with complete certain prerequisites. Beyond that, it is up to the exchanges to process the payments, with some expected to make transfers to creditors immediately and others not so quickly. The expected deadlines are about 90 days.
