Mt. Gox currently holds over 44.8K Bitcoins, worth around $2.86 billion, which awaits distribution to creditors under its rehabilitation plan.
The distribution of funds from Mt. Gox, the defunct cryptocurrency exchange that closed a decade ago, is set to continue soon after the rehabilitation trustee, Nobuaki Kobayashi, finalized the first batch in August.
According to on-chain data analysis conducted by Arkham Intelligence, Mt. Gox emptied four of its Bitcoin wallets in the last 24 hours, after receiving around $370k in BTC BTC $87 363 24h volatility: 1.7% Market cap: $1.74 T Vol. 24h: $73.19 B from Kraken exchange. The Bitcoin address associated with Mt. Gox currently holds about 44.899k BTCs, worth around $2.86 billion.
As a result of the recent on-chain activity, speculations on the potential distribution of the final batch have escalated.
The distressed firm had previously indicated that the creditors would be repaid their funds once the required information is confirmed by the different exchanges that are facilitating the rehabilitation process.
MT. GOX BTC ON THE MOVE
Mt. Gox emptied 4 of their wallets last night after receiving $370K in BTC from Kraken.
More repayments coming soon?
Mt. Gox currently holds 44,899 BTC ($2.85B). pic.twitter.com/Zh1OKQOygW
— Arkham (@ArkhamIntel) September 25, 2024
Impact of Mt. Gox Repayment on Bitcoin Price Action
The distribution of Mt. Gox funds in the past triggered bearish crypto volatility, as some investors feared adverse effects. For instance, Bitcoin price dropped from trading above $64K to a low of about $53K in two weeks following the Mt. Gox repayment of nearly $5 billion.
With BTC price facing an intense resistance zone between $64K and $65K, the Mt. Gox repayments could catalyze midterm bearish sentiment. Furthermore, the US spot Bitcoin ETF issuers and whale investors have significantly reduced their BTC accumulation pace.
Nonetheless, the upcoming distribution of FTX and Alameda Research funds, amounting to about $16 billion in stablecoins, could significantly help bolster the crypto buying pressure.
From historical data, the fourth quarter after the Bitcoin halving tends to be bullish, with more investors speculating on a parabolic rally in the near term. Additionally, Gold prices have been on a rising trend and reached an all-time high earlier today, signaling a similar move for Bitcoin.
Market Struggles
The mainstream adoption of digital assets and web3 protocols has faced significant challenges due to the notorious hacks that have left users devastated. More recently, the Indian crypto exchange WazirX was compromised, and users’ funds amounting to more than $230 million were siphoned by the attackers.
As of this report, the WazirX attacker is almost done laundering the stolen funds through the crypto mixer Tornado Cash. On the other hand, WazirX users may never get to be made whole again despite the blame games happening at the leadership level.
In another instance, Indonesian crypto exchange, Indodax fell victim to a major system attack resulting in the loss of over $20 million of users’ funds.
The poor security measures used by centralized exchanges, thus resulting in loss of funds, have hindered the mainstream adoption of crypto assets.
Recently, the FBI warned that North Korean hackers are targeting Bitcoins for the US spot BTC ETFs issuers, which are mostly stored by Coinbase Global Inc (NASDAQ: COIN).
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