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- Mt. Gox transferred 11,501.4 BTC (~$1B), marking its third major Bitcoin move in four weeks, fueling speculation about imminent creditor payouts.
- A portion of the BTC moved into a warm wallet, which traders often use for transactions. This action raised concerns about liquidation.
- Unlike past transfers, the latest movements have not significantly impacted Bitcoin’s price, though market watchers remain cautious.
Bitcoin exchange Mt. Gox has been moving its Bitcoin stash regularly as part of its rehabilitation proceedings. The latest figures provided by Spot On Chain show that the exchange transferred 11,501.4 BTC, valued at approximately $1 billion. This is the third sizable transfer in the past four weeks. It has been fueling speculation about payouts to creditors in the near future and the potential for market volatility.
A recent transaction has seen 10,608 BTC, valued at approximately $929.7 million, moved to a new wallet, with a further 893.4 BTC, worth $78.3 million, moved to a warm wallet. Traders frequently use warm wallets for everyday transactions, fueling speculation that these funds could be sold in the near future. In a further transfer, 332 BTC (valued at $25.5 million) was moved to Bitstamp, a cryptocurrency exchange, indicating possible market action to follow.
Unlike previous Bitcoin movements from Mt. Gox, the recent Bitcoin transfers have had no significant impact on its spot price. This stands in direct contrast to mid-2023, when the same transactions spawned fears of creditor sell-offs, which in turn led to severe market volatility.
The size of these transfers, particularly following the 12,000 BTC movement on March 6 and the 11,833 BTC transfer on March 11, speaks to the high probability that a significant portion of the remaining Bitcoin holdings will soon be released. These transfers suggest a distribution of assets is near.
Mt Gox Bitcoin transfers hint at accelerated repayments
The ongoing Bitcoin payouts herald a potential acceleration of repayment to creditors. The majority of creditors can choose to opt for a Bitcoin payout instead of fiat currency. They are in a position to make this decision. A July 2024 Reddit poll, following the exchange’s first payouts, indicated that most creditors were not in a hurry to sell their Bitcoin, indicating a long-term holding bias rather than offloading immediately.
Mt. Gox started its repayment process in July 2024 with its massive stakes of 142,000 BTC (around $11 billion), 143,000 Bitcoin Cash ($47 million), and 69 billion yen ($469 million). While payment has already been made to some creditors through exchanges like Kraken and Bitstamp, most of the money remains with Mt. Gox. The exchange still holds around 35,000 BTC, worth $3.1 billion.
Despite the progress in Bitcoin transfers, they extended the final deadline for full creditor payouts to October 31, 2025. The delay is due to the ongoing verification and processing problems. Traders and analysts will keep a close eye on market reactions. They will particularly watch to see if the massive-scale sales impact Bitcoin’s price movement. As more Bitcoin transfers progressively and potentially gets liquidated, traders will closely monitor the effects.
For now, all eyes remain on Mt. Gox’s next moves, as each transaction brings the crypto community closer to resolving one of the most significant collapses in Bitcoin history.
Related | IMF Recognizes Bitcoin as a Key Digital Asset in Global Financial Framework
