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.
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.
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