The massive transfers of BTC by Mt. Gox sparked speculations about whether its creditors' repayment would begin soon.
Mt. Gox Moves More BTC; Creditors' Repayment in Progress?
The bankrupt cryptocurrency exchange Mt. Gox sent 2,500 BTC worth $222 million to two unidentified wallet addresses. This transfer marks the exchange's fifth batch of Bitcoin movement to external addresses this month.
Arkham Intelligence data shows this transfer occurred on 11 November. An Mt. Gox cold wallet moved 2,500 bitcoin to two unnamed addresses "1PQZw...DDJtK" and "bc1q8...kv4tz."
Mt. Gox has made several internal and external bitcoin transfers since October 31. The exchange moved more than $2 billion in BTC last week, marking the largest amount moved by the defunct exchange in months.
Creditor Repayments in Motion?
These massive fund movements have sparked speculations that the bankrupt exchange could resume its creditors' repayment soon. Similar movements by Mt. Gox preceded distribution through centralized exchanges like Kraken and Bitstamp.
However, whether the latest transfer is part of its potential distributions to creditors remains unclear. Moreover, the defunct crypto exchange had extended the deadline for the repayment from October 31, 2024, to October 31, 2025.
Meanwhile, the latest transfer coincides with Bitcoin's rally above the $82,000 threshold. Such massive movement of BTC often triggers fear of selling pressure, typically preceded by price declines.
For example, when Mt. Gox moved 47,229 BTC in July, Bitcoin price dropped over 3% to $59,000, a two-month low.
At the time, market observers anticipated a payout of $9 billion in Bitcoin to the exchange's creditors, triggering fear of a supply overhang. This fear and uncertainty depressed investor sentiment, contributing to the drop in the price of Bitcoin.
For background purposes, Mt. Gox, established in 2010 in Tokyo, was the first and world's largest bitcoin exchange. The exchange met its demise following a major cyberattack in 2014, leading to the loss of at least 850,000 BTC.
Since the Mt. Gox exploitation, many creditors have been expecting reimbursement for their Bitcoin. In July, Mt. Gox initiated the process and has since been gradually distributing assets back to their owners.
Bitcoin Soars Above $89,000; What's Next?
Mt.Gox's latest transfer comes as Bitcoin soars to new all-time highs amid a bullish atmosphere in the crypto market. Bitcoin surged above $76,000 on November 6 after Donald Trump won the US presidential election.
Investors are optimistic that the Trump administration will introduce pro-crypto regulations that will foster growth in the digital asset industry.
Bitcoin currently trades at $88,009, with a 7.7% price increase over the past day. The current price marks a 1.65% drop from its latest all-time high of $89,956, attained earlier today, November 12.
With Trump's promise of establishing a strategic Bitcoin stockpile when he becomes president, all eyes are on Bitcoin. Market observers believe Bitcoin will witness massive rallies in the coming day, with analysts forecasting a surge to $100,000 before 2024 ends.