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Home Cryptocurrency Bitcoin Moves on Mt Gox Won’t Trigger Selling Pressure Immediately: CryptoQuant

Bitcoin Moves on Mt Gox Won’t Trigger Selling Pressure Immediately: CryptoQuant

by xyonent
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Mt Gox Bitcoin.jpg

Analysts at market intelligence platform CryptoQuant say recent Bitcoin (BTC) moves by the shuttered crypto exchange Mt. Gox are not cause for alarm and will not cause any immediate selling pressure on the digital asset.

According to the latest weekly report According to the analytics firm, the transfers were made between Mt. Gox’s trustee addresses and do not indicate that creditors have begun repaying their debts.

No need to worry

On May 27, an on-chain analyst noticed a transfer of 138,000 BTC (worth roughly $9.4 billion in Bitcoin’s trading value at the time) from a wallet that had held Bitcoin since 2018. CryptoQuant said the transfer occurred within five hours, raising concerns within the crypto community about the impact of such a transaction.

The cryptocurrency was moved via seven different transactions, with transaction volumes ranging from 4,000 to 32,000 BTC. All funds were initially moved to one address and then dispersed across three different addresses. At the time of writing, each address held 47,400 BTC.

The crypto community speculated that the transfer marked the start of distributions to Mt. Gox’s creditors. CryptoPotato As news of the transfer spread, the value of BTC reportedly dropped 4%. Community members also expressed concern that the asset price could fall further if the exchange’s creditors decided to liquidate holders shortly after receiving their Bitcoin.

Contrary to what most in the community believe, the new address that received the bitcoins belongs to Mt. Gox’s rehabilitation trustee, the lawyer managing the creditor repayment process.

Repayments to Mt Gox creditors have yet to begin

According to the May 28 announcement, the exchange has not begun repaying its creditors, nor has it sold any BTC or cryptocurrencies in that regard.

“This type of transfer, which consolidates large amounts of bitcoin that are spread across multiple addresses into a smaller number of addresses, appears to be a precursor to the trustee starting to repay creditors under the reorganization plan. It remains to be seen how long it will take before repayments begin,” CryptoQuant said.

Therefore, analysts at CryptoQuant believe that the deal will not create any immediate selling pressure on BTC since the asset in question is not yet available on the open market.

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