As a seasoned crypto investor with a decade of rollercoaster rides under my belt, I’ve learned to navigate the market’s unpredictable tides with a grain of salt and a steady hand. The recent movement of 12,000 Bitcoin from Mt. Gox has sent ripples through the crypto world yet again, reminding us all that history tends to repeat itself in this industry.
Previously prominent Bitcoin exchange Mt. Gox is currently transferring Bitcoins again. Reportedly, it moved approximately 12,000 BTC, valued at more than $709 million, to an unidentified digital wallet, as per blockchain analysis firm PeckShield. This action could potentially be the reason behind Bitcoin’s recent price dip, dropping below the $60,000 threshold.
According to a recent post by PeckShieldAlert, Mt. Gox transferred 12,000 BTC to the wallet with the label “1PuQB…nWhTb” around Tuesday night. Furthermore, an amount of 1,264.69 BTC, equivalent to approximately $74.77 million, was sent to another cold storage wallet linked to Mt. Gox. These transactions have not been moved to other wallets yet, leading some market analysts to ponder about the possible intentions behind these transfers.
It’s worth noting that the occurrence of these Bitcoin transfers coincides with a recurring trend noticed over the past few weeks. Typically, these transfers from Mt. Gox have been followed by creditor payouts and significant fluctuations in Bitcoin prices.
Significantly, on August 13 and 14, a Bitcoin wallet linked to the digital currency exchange BitGo transferred approximately $2 billion worth of Bitcoin that had been received from Mt. Gox to another wallet. Shortly after this transaction, Bitcoin’s value dropped below $60,000, but it eventually rebounded in the subsequent days.
Mt. Gox lost over 850,000 Bitcoins a decade ago due to an attack, and since then, those impacted have been trying to get their Bitcoin back. The process for returning these Bitcoins started in July, and about 70% of the transactions have now been completed.
Over the past week, approximately 17,000 creditors have collected roughly 3.2 billion dollars’ worth of Bitcoin. Nevertheless, based on recent data from CryptoQuant, the exchange still retains about 2.7 billion dollars’ worth of Bitcoin, remaining in its possession.
Market Movement
As a crypto investor, I’ve noticed that the recent Bitcoin transfers have sent ripples throughout the market. In just the past 24 hours, the price of Bitcoin dipped to approximately $59,600, representing a drop of over 2%. This decline has also affected Bitcoin’s market capitalization, which now stands at around $1.17 trillion, marking a 2% decrease.
The broader market has experienced similar impacts, causing Ethereum (ETH) to dip slightly below $2,600, now trading at approximately $2,606. Furthermore, the Crypto Fear and Greed Index has dropped to 26, suggesting a prevailing sentiment of apprehension among investors.
Even though the market for Bitcoin is experiencing ups and downs, institutional investment in it continues to be robust. For instance, US Bitcoin exchange-traded funds (ETFs) recorded inflows totaling approximately $88 million on August 20. Notably, BlackRock’s IBIT and Ark’s ARKB each received $55.4 million and $52 million in investments respectively. However, Grayscale’s GBTC experienced a net outflow of around $12.8 million on that particular day.
During the ongoing repayment phase for Mt. Gox, investors will closely monitor the situation due to its possible impact on Bitcoin’s market value.
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2024-08-21 11:57