Mt. Gox Transfers 500 BTC, Raising Hopes for Creditor Repayment: Bitcoin Sell-Off Coming?

Mt. Gox Transfers 500 BTC, Raising Hopes for Creditor Repayment: Bitcoin Sell-Off Coming？

The once-notorious crypto exchange Mt. Gox transferred 500 Bitcoin (BTC) (worth about $35.04m) to two unmarked addresses. This unexpected action has sparked intense speculation: is this the first step in repaying creditors, or are we on the brink of a major sell-off？ As Bitcoin experienced a 4% drop in its price, speculation rose about the reasons behind this transfer.

Mt.Gox Transfer 500 BTC

According to data from Arkham Intelligence, Mt. Gox recently moved 500 BTC, worth about $35.04 million, to two unmarked addresses. This transfer was split into two parts, with 31.78 BTC sent to the address bc1qn2…qqn94s, while a significantly larger 468.24 BTC went to 12cTjQ…2C4mMJ.

Mt Gox has a large amount of movement. At 8:42 UTC+8 today, Mt Gox transferred 500 BTC (worth about $35.04m) to two unmarked addresses, 31.78 BTC to bc1qn2…qqn94s and 468.24 BTC to 12cTjQ…2C4mMJ, and then 12cTjQ…2C4mMJ made further distributions.

— Wu Blockchain (@WuBlockchain) November 1, 2024

The latter address then initiated further distributions, sparking speculation that this movement might be part of a larger effort to repay creditors or, potentially, the lead-up to a significant sell-off.

Some experts suggest that these distributions could hint at Mt. Gox making progress on its long-awaited rehabilitation plan, signaling hope for creditors awaiting compensation after the exchanges infamous 2014 collapse.

However, without any official statement from Mt. Goxs team or its bankruptcy trustees, the purpose behind these transfers remains unclear.

Mt. Goxs Collapsed History

Mt. Gox was once the largest Bitcoin exchange in the world, but it fell apart in 2014 after a huge hack that lost 850,000 BTC. This left many investors with nothing. Since then, whenever Bitcoin moves from Mt. Gox wallets, it brings a mix of feelings—hope for people waiting to get their money back and worry about a possible sell-off that could lower Bitcoins price.

Recently, the trustee managing the failed Japanese exchange announced that they are giving creditors more time to get paid back. The new deadline is now set for October 31, 2025, as stated in a message from October 10.

Could Bitcoins Price Be Affected？

Large BTC transfers by major entities often create ripples in the market, and Mt. Goxs BTC activity is no exception. However, Bitcoin price has just seen a massive bullish wave touching a $73k march which was last seen in March after consolidating for the past two months between $58K to $67K.

As of now, bitcoin price is trading around $69,489 reflecting a drip of 4.3% seen in the last 24 hours with a market cap of $1.4 trillion.