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Mt. Gox Bitcoin Holders Unexpectedly Refuse to Sell

Published 2024-07-24, 10:00 a/m
© Reuters.  Mt. Gox Bitcoin Holders Unexpectedly Refuse to Sell
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U.Today - Infamous crypto exchange Mt. Gox has transferred another 2,237 BTC, equivalent to about $147 million, to Bitstamp just hours ago. This move is part of the ongoing process to repay creditors, following a series of jaw-dropping Bitcoin transfers over the past few weeks.

Since early July, Mt. Gox has shifted a total of 54,662 BTC, valued at approximately $3.44 billion. These transfers have included substantial amounts sent to various platforms, including Bitbank and Bitstamp, and a significant deposit to a wallet likely associated with Kraken.

Initially, the market reacted with concern, fearing that the release of these long-held Bitcoins might trigger a sell-off, as Mt. Gox creditors have been waiting over a decade to receive their assets.

However, recent analysis from CryptoQuant suggests a more positive outlook. Data reveals a notable increase in Bitcoin withdrawals from Kraken following distribution to Mt. Gox users. This trend indicates that rather than selling, many recipients are moving their Bitcoin to cold storage, potentially signaling a long-term holding strategy.

Despite the large-scale transfers, the increase in withdrawals from Kraken points to a potential reduction in immediate selling pressure.

Currently, 90,344 BTC, worth around $6 billion, remains in the exchange's wallets. The ongoing question is whether this holding behavior will help stabilize or even boost Bitcoin's price, countering initial fears and uncertainties surrounding the Mt. Gox repayments.

This article was originally published on U.Today

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