Mt. Gox to Commence Large BTC Transfers Shortly After Initiating Small Test Transactions, BTC Price Slips
The collapsed crypto exchange, Mt. Gox, is gearing up for the next phase of large BTC transfers after it was cited moving fractions of Bitcoins between wallets. These small transfers are suggested to be test transactions and are usually a precursor to major movements.
Interestingly, this comes against the backdrop of a significant decline in the price of Bitcoin within the last 24 hours. The value of the flagship coin has shed all the gains it accrued in the previous day, after briefly flirting with the $70k mark. As a result, the global market has followed the downtrend, raising major concerns among investors about the future outlook.
Mt. Gox Sends Small BTC Transfers to Another Wallet
According to data from the tracking platform Arkham Intelligence, the former crypto exchange moved 0.02 BTC, worth $1.34k from the wallet ’12Rgp’ to another address identified as ‘1Adb.’ Within the same hour, the receiving address shifted another 0.02 BTC to a wallet ’19tG…effa.’
Judging from previous movements, Mt. Gox usually initiates smaller test transfers in preparation for bigger ones in line with its creditors’ repayments. Consequently, it is safe to say that Mt. Gox is getting ready to move the remaining 80k BTC ($5.339 billion) in its custody to the partnered exchanges for redistribution.
After ten years of being out of business, Mt. Gox finally began repaying its creditors as promised from the first week of July. Since then, the Rehabilitation Trustee has paid Bitcoin and Bitcoin Cash to about 13,000 rehabilitation creditors, representing about 65% of the eligible users according to a previously released statement.
For redistribution, Mt. Gox partnered with five top global crypto exchanges including Bitstamp, Kraken, Bitbank, Bitgo, and SBI VC Trade. Within the first two weeks, Mt. Gox moved the first batch of BTC to creditors on the Kraken and Bitstamp exchanges. While some creditors complained about their inability to withdraw funds from Bitstamp because of security checks, the situation now appears to be solved.
Meanwhile, Bitcoin has suffered notable selling pressure since the start of the repayment. Investors and market participants worry that the price of BTC might fall as low as $45k hence triggering FUD that pushed the coins’ price as low as $53k. Even though BTC has rebounded since then, it has lost a significant amount over the last day.
Bitcoin Price Crashes to $66K
Meanwhile, Bitcoin experienced a notable uptrend on July 29 after its value rose as high as $69,811. The catalyst behind the rally was the recently concluded Bitcoin Conference in Nashville which saw high-profile individuals including Donald Trump taking the stage to address the crypto community.
During his 51-minute speech, the former president informed the audience about his intentions for Bitcoin and the community if he is elected as the president in the coming election. He reiterated how he wants the U.S. to be the crypto capital of the planet and also his plans of sacking the current SEC chairman, Gary Gensler.
After the conference, Bitcoin and the global crypto market rallied to new weekly highs. However, less than 24 hours later, the momentum looks to have faded as BTC slumped back to the $66k zone. According to CoinMarketCap data, BTC lost about 3.69% of its value to trade at $66,926. Its one-day trading volume surged by 73% signifying increased activities.
One of the key reasons for the current downtrend can be attributed to the recent BTC transfer by the United States Government. The entity sent 29,800 BTC, valued at approximately $2 billion, from Silk Road. Analysts predict that if BTC can hold above $65,800, then a rebound to $68k might be imminent.
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