Anika Begay
THE defunct cryptocurrency exchange Mt. Gox he hasn’t finished with his Bitcoin Refunds to creditors, as on-chain data shows that the exchange has recently moved a significant amount of BTC. This has raised the question of how much Bitcoin Mt. Gox has left, considering the negative impact These BTC refunds have so far had an impact on the price action of the most important cryptocurrency.
Mt. Gox’s 2 Billion BTC on the Move
The on-chain analytics platform Arkham Intelligence revealed in an X (ex Twitter) send that a wallet (bc1q26) that had received $2.19 billion in Bitcoin from Mt. Gox had recently initiated test transactions. This development is significant as the wallet that received the 33,105 BTC ($2.19 billion) from Mt. Gox is believed to belong to Bitgo, the fifth and final exchange approved by the trustee for the BTC Refunds.
Therefore, Bitgo may be preparing to distribute these Bitcoins to creditors. After the test transaction, Bitgo moved Mt. Gox’s $2 billion BTC to another wallet (bc1qpn5), which could be a security precaution before starting creditor refunds. These Bitcoin transfers are also believed to be related to creditor refunds because some users on a Mt. Gox Reddit channel recently stated they received BTC on their Bitgo account.
Mt. Gox Bitcoin Refunds began last month, spreading panic across the cryptocurrency market, with BTC dropping as low as $54,000. These BTC distributions have raised concerns that Mt. Gox lenders might sell their BTC once they receive it, which would put significant selling pressure on the flagship cryptocurrency.
However, the on-chain analytics platform Cryptoquant revealed that these Mt. Gox creditors chose to hold onto rather than offload their BTC holdings. Cryptoquant cited a spike in Kraken withdrawals following Mt. Gox Bitcoin refunds through the exchange, suggesting that these creditors were moving their coins to cold wallets.
This explains why Bitcoin has remained stable despite the recent Mt. Gox BTC transfers. However, the defunct cryptocurrency exchange continues holds 46,164 BTC ($2.81 billion), which could still have a significant impact on the market depending on whether other creditors decide to hold them.
Bitcoin Awaits Critical Inflation Report
Bitcoin continued to move sideways as investors await July price action Consumer Price Index (CPI) inflation report, which will be released on August 14. A positive inflation reading would strengthen the case for the United States Federal Reserve to cut rates in September, boosting investor confidence in risky assets like Bitcoin and other cryptocurrencies.
July Producer Price Index (PPI) The inflation report, released on August 13, was positive, coming in below expectations. Therefore, a positive CPI inflation report could be the confirmation the Fed needs that inflation has indeed slowed down and that now is the perfect time for rate cuts. After the Bitcoin crash on August 5, Bernstein analysts expected that the price of Bitcoin will rise again when the Fed cuts interest rates.
Featured image created with Dall.E, chart from Tradingview.com
