Reddit

Test

Impact

Arkham

Force

Mt. Gox has initiated test transactions to facilitate creditor repayments through the Bitstamp cryptocurrency exchange. The first transactions were executed from the Mt. Gox wallet to Bitstamp’s cold wallets.&nbsp; 
Blockchain intelligence firm Arkham Intelligence flagged these movements in a July 22 X post, noting the deposits of $1 to four separate Bitstamp deposit addresses. This step signals the nearing repayment process, as Bitstamp is one of five exchanges collaborating with the Mt. Gox Trustee. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 THIS MORNING: MT GOX MOVING FUNDS Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is 1 of 5 exchanges working with the Mt. Gox Trustee to facilitate creditor repayments. Mt. Gox currently holds: $6.08B in BTC These transfers are likely to… <a href="https://t.co/uyOLL7O065" target="_blank">pic.twitter.com/uyOLL7O065</a>— Arkham (@ArkhamIntel) <a href="https://twitter.com/ArkhamIntel/status/1815329609644159136?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">July 22, 2024</a>
 </blockquote> 
 </div>
</figure> 
The overall repayment involves over $9.4 billion worth of Bitcoin owed to approximately 127,000 creditors who have awaited recovery for more than a decade. The test transactions are preliminary and aim to ensure the accuracy of the repayment process before larger sums are transferred. Consequently, this move highlights the forthcoming distribution of significant Bitcoin amounts. 
Concerns About Market Impact and Investor Sentiment 
The potential impact on Bitcoin’s market price remains a point of concern among investors. With the majority of Mt. Gox creditors expected to sell their Bitcoin, there could be considerable downward pressure on Bitcoin’s value, currently priced at $66,793.&nbsp; 
Finance analyst <a href="https://www.cryptotimes.io/2024/07/05/brace-for-mt-gox-creditors-99-bitcoin-sell-off-analyst/" target="_blank" data-type="link" data-id="https://www.cryptotimes.io/2024/07/05/brace-for-mt-gox-creditors-99-bitcoin-sell-off-analyst/" rel="noreferrer noopener">Jacob King predicts</a> that up to 99% of creditors may liquidate their holdings upon receipt. This influx of Bitcoin into the market could result in a gradual but significant drop in prices over the coming weeks. 
Despite these concerns, a recent Reddit community poll reveals that 56% of Mt. Gox creditors intend to hold onto their Bitcoin rather than sell. Only about 20% of respondents plan to sell their assets. This divergence in expected actions may influence market dynamics differently from anticipated. 
Major Bitcoin Holders Remain Active 
While concerns over potential sell pressure persist, large Bitcoin holders, known as whales, continue their buying activities without hesitation. On July 17, a prominent whale purchased 245 BTC, worth nearly $16 million.&nbsp; 
The buyer has traded Bitcoin only twice this year, achieving over $30 million in profits from these transactions. As of July 17, the Mt. Gox-associated wallet holds over 90,300 Bitcoin, valued at approximately $6.12 billion, according to Arkham Intelligence <a href="https://platform.arkhamintelligence.com/explorer/entity/mt-gox" target="_blank" rel="noreferrer noopener nofollow">data</a>. 
The timing for resuming Mt. Gox repayments remains uncertain. However, today’s test transactions indicate that the final preparations are underway, with Bitstamp set to play a crucial role in the forthcoming repayment phase. 
The initiation of test transactions by Mt. Gox marks a step toward repaying creditors. While market concerns about potential sell pressure exist, the actual impact remains to be seen.&nbsp; 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/07/18/mt-gox-creditor-accounts-targeted-with-brute-force-attack/" target="_blank" rel="noreferrer noopener">Mt. Gox Creditor Accounts Targeted With Brute Force Attack</a> 
</blockquote>

Mt. Gox Begins Test Transactions on Bitstamp Ahead of Repayments

The Crypto Times

Other articles published on Jul 22, 2024

Breaking: Grayscale & Bitwise Ethereum ETF Gets SEC Nod For NYSE Trading

Ripple’s Legal Victory Secures XRP’s Future; Rollblock Set for 800% Increase as Kaspa Prices Fluc...

Banana Gun Shoots Up 30% on Binance Listing - Here's What You Need to Know About the Telegram Bot

Net Inflow for US Bitcoin Spot ETFs Reaches $383M, BlackRock and Fidelity Lead

iFX EXPO International 2024

Nvidia is reportedly developing a new scaled-down version of its flagship AI chip for China

Join our free newsletter for daily crypto updates!