Bitcoin Selling Pressure Mounts as Mt. Gox Transfers Over 45K BTC for Creditor Repayments
Defunct crypto exchange, Mt. Gox, has resumed the process of creditor repayments after it shifted a massive 45,000 BTC to another wallet. Notably, this has coincided with a drop in the price of Bitcoin over the last day. While the flagship cryptocurrency began the week in green and nearly broke the $70k mark, it soon shed all the gains it accrued within 48 hours.
As a result, investors and market observers are speculating how the price will react after the next batch of creditor repayments is complete. Since the start of the repayments in early July, the price of BTC has exhibited high volatility, dropping to $53k and jumping as high as $69k.
Mt. Gox Moved 45K BTC in Two Hours
According to a recent update by Spot on Chain, an AI-driven crypto insight platform, the bankrupt crypto exchange has sent exactly 45,511 BTC, valued at approximately $3.15 billion, to three separate wallets. These transfers were made within a two-hour time frame. Per previous activities, the recent transfer implies that Mt. Gox might soon be sending parts of these Bitcoins to centralized exchanges for creditor repayments.
Since the repayment start date on July 5, Mt. Gox has transferred about 61,559 BTC (worth $3).88 billion) to three of the partnered crypto exchanges for redistribution purposes including Bitstamp, Kraken, and Japan-based SBI VC Trade.
Before this transfer, Mt. Gox initiated small test transfers less than 24 hours ago, sending only 0.04 BTC, worth $2.68k from its internal wallet to two different external wallets as has been the case throughout the repayment period. While some of its creditors have acknowledged receipt of their funds, others have complained about the inability to withdraw funds from designated exchanges citing high security hurdles. This has caused major frustration among users who voice their pain on the Mt. Gox insolvency subreddit.
What’s Next For Bitcoin?
Meanwhile, the price of Bitcoin traded at $66,299 at the time of writing, representing a 0.82% decline in the last 24 hours. The news of the Mt. Gox transfer has added to the layer of uncertainty about the future outlook of the main cryptocurrency.
The Federal Open Market Committee (FOMC) meeting which is scheduled to happen later today is another key focus of investors. The outcome of the meeting will likely impact the BTC price trajectory in the coming days. It is known that macroeconomic factors often play a role in the Bitcoin price pattern.
Moreover, volatility is expected to intensify as per BloFin Academy report. According to the update, the GEX data reveals that there is a negative gamma between the price range of $65k and $70k. The reason for this is the options that dominate the Bitcoin market and are expiring on August 2. Ultimately, the closer the expiry date, the higher the market fluctuations.
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