Bitcoin Faces Selling Pressure as Mt. Gox Begins Internal Coin Movements

Bitcoin (BTC) encountered renewed selling pressure on Tuesday, triggered by blockchain data indicating that the defunct exchange Mt. Gox had started internal transactions that could be related to repayment to some of its creditors. The number one digital currency fluctuated and was down as low as 3% to trade below $63000, although touching $65,000 during the early Asian trading session.

Also Read: Mt. Gox Transfers $24 Bitcoin to Activate Wallet Ahead of Customer Repayments

Significant Movements from Mt. Gox Wallets

It is quite clear that the fall in the value of Bitcoin correlated with the movement of a wallet related to Mt. Gox. First, a slight motion of 0.021 BTC ($1,000) can be considered the starting point of any interaction that was sent to the blockchain address 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V. Assuming that it was a test, this transfer was then succeeded by a massive transfer of 44,527 BTC ($2.84 billion) to an internal wallet. As on-chain investigator Lookonchain suggested, this is possibly part of the repayment plan. The exchange started repaying the amount on July 4, through which the fears relating to the sellers, who may be in the majority and have been waiting for repayment for almost a decade, emerged.

Mt. Gox Repayment Plan Raises Concerns

The large internal trades by Mt. Gox have sparked renewed fears in the market. This activity considered a tactic for repaying, has sparked widespread selling by creditors who have been expecting their reimbursement about ten times. These movements occurred when the Bitcoin price was low, which shows that these transactions may affect the cost of Bitcoin. 

Conclusion

The internal movements of Bitcoin by Mt. Gox have sparked renewed selling pressure, causing a notable dip in the cryptocurrency’s value. This activity, seen as part of a repayment strategy, has raised fears of mass selling by long-awaiting creditors. As the repayment continues, market participants remain vigilant about the potential impacts on Bitcoin and other cryptocurrencies.

Also Read: Ripple’s $1 Million Donation Fuels Massachusetts Senate Race

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