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Mt. Gox has transferred a significant amount from their Bitcoin holdings. This development has led to speculations that the defunct crypto exchange might be looking to make BTC repayments to its remaining customers. If so, this puts the Bitcoin price rally at risk, considering how the past repayments affected the flagship crypto.
Mt. Gox Moves Part Of Bitcoin Holdings
Arkham Intelligence data shows that the defunct crypto exchange has transferred part of its BTC holdings. Mt. Gox emptied four of their wallets after receiving $370,000 BTC from the Kraken. This has led to speculations that the exchange might be looking to make more repayments soon enough. Mt. Gox still holds 44,899 BTC ($2.85 billion), which indicates that the exchange isn’t done repaying its customers.
The crypto exchange began its Bitcoin repayments to customers earlier this year through Kraken, Bitbank, BitGo, Bistamp, and SBI VC trade. As such, the transfer between Mt. Gox and Kraken further suggests that the defunct crypto exchange might be looking to make more BTC repayments.
These recent transfers put the Bitcoin price rally at risk, considering the impact of the earlier repayments on the BTC price. The crypto dropped below $55,000 at the beginning of July, just around when the crypto exchange began its repayments to customers.
A wave of sell-offs among these customers contributed to the downward pressure that Bitcoin faced. However, it is worth mentioning that the German government also played a major role in the price crash during that period. They sold off all their 50,000 BTC over a three-week period starting in June.
Will This Time Be Different?
While a potential Mt. Gox Bitcoin repayment could undoubtedly put selling pressure on the Bitcoin price, it is worth mentioning that the flagship crypto is in a more bullish environment compared to July, when the defunct crypto exchange began repaying customers. Therefore, the market might be able to weather the storm much better this time.
For instance, crypto analyst Ali Martinez recently revealed that Bitcoin whales have sold over 20,000 BTC ($1.28 billion) in the last 24 hours. However, this has hardly impacted price, especially considering that the flagship crypto rose to $64,000 during that period.
The recent bullish outlook for Bitcoin stems from several factors, including the macro side. Last week, the US Federal Reserve cut interest rates by 50 basis points (bps). Meanwhile, on Tuesday, the People’s Bank of China (PBoC) announced rate cuts and a stimulus policy to help revive the country’s economy. Per a CoinGape report, the Bitcoin price is targeting $100,000 on the back of China’s stimulus package and its crypto trade with Russia.
At the time of writing, the BTC price is trading at around $63,700, up in the last 24 hours. Trading volume is also up over 8%, with $28.9 billion traded during this period.
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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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