Mt. Gox-Linked Wallet Transfer 2,300 Bitcoin, Is a Massive Sell-Off Looming?

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Bitcoin just regained the $100K mark, and defunct crypto exchange Mt. Gox is back in the spotlight with over 2,300 BTC moving out of its wallet. This sudden transfer has sparked curiosity about the reasons behind these large transfers—are creditor repayments finally on the way, even with the deadline pushed back.

Mt. Gox-Linked Wallet Transfer 2,300 BTC

On December 12, a wallet associated with Mt. Gox moved 2,324 BTC, roughly worth $234 million, to an unidentified address. This move came after Bitcoin’s reclamins, the $100K mark, driven by optimism surrounding potential U.S. Federal Reserve rate cuts.

Interestingly, this transfer followed another significant move the previous day. On December 11, 2,623 BTC (worth approximately $255 million) was transferred from Mt. Gox-linked wallets to various addresses.

These movements appear to be part of a series of large Bitcoin transfers made this month, including one on December 4, when the exchange sent $2.8 billion worth of Bitcoin to an unknown wallet.

Possible Repayment to Creditors

While the exact reason for these transfers remains unclear, historical trends suggest that they could signal the beginning of creditor repayments. Mt. Gox had previously announced in July that it was starting to repay creditors in Bitcoin and Bitcoin Cash (BCH). 

The repayment process involves creditors verifying their accounts and registering with certain crypto exchanges like Bitstamp and Kraken to receive their funds.

Deadline Extension

Originally, repayments were expected to be completed by 31 October 2024. However, due to incomplete procedures and some technical issues, including a system error leading to “double deposits,” the repayment deadline was extended to October 31, 2025.

Crypto Sell-off Could Happen?

Mt. Gox’s history with large Bitcoin transactions has raised concerns about potential market disruptions. Some fear that the movement of these Bitcoin funds could lead to a significant sell-off. 

As of now, Bitcoin is trading near the $100K level, showing strong momentum with a market cap hitting $2 trillion.

With the U.S. government expected to adopt a more pro-crypto stance in January 2025, Bitcoin may continue its bullish trend, potentially hitting new ATH soon.