Bitcoin Skyrockets $700M on Mt. Gox but Remains Stuck at $59K

Alex Thorn of Galaxy states that he only anticipates 1,265 Bitcoin, or more than $70 million, to be sold on the open market.

13,265 BTC were moved on-chain by the defunct exchange Mt. Gox, according to Arkham Intelligence.

Alex Thorn of Galaxy predicts that just 1,265 BTC will be sold on the open market.

In the bitcoin (BTC) market, selling pressure related to Mt. Gox may resurface.

According to data tracking firm Arkham Intelligence, an address connected to the closed exchange moved 13,265 BTC, valued at $784 million, early on Wednesday. Of that amount, 12,000 BTC were transferred to an address called “1PuQB.”

In the meantime, the remaining money were moved to the address “1Jbez,” which Arkham had determined to be Mt. Gox’s cold wallet. More than 46,000 BTC are still held by the defunct exchange.

This summer, the price of Bitcoin has been significantly pressured lower by the Mt. Gox creditor repayments.

However, according to Alex Thorn, head of research at Galaxy Digital, the most recent round of on-chain movement might not result in significant selling pressure.

“We presently think that of the 13,265 BTC moved in this tx, as it were 1,265 ($74.5 million) is implied to distro, w/ 12,000 getting to domain new cold capacity so, exceptionally little,” Thistle expressed on X.

Since Mt. Gox started moving coins again, BTC has stayed mostly stable over $59,000.

For the first time in three weeks, Mt. Gox moves $700 million in Bitcoin

The biggest rise in Bitcoin since July 30 has occurred, but the head of research at Galaxy doesn’t believe it’s for distribution.

In its first significant transaction since the end of July, the defunct cryptocurrency exchange Mt. Gox transferred almost 12,000 Bitcoin to a new, unidentified wallet address.

On August 20, at 11:39 p.m. UTC, Mt. Gox took the action by sending 12,000 Bitcoin BTC, valued at $709.4 million, to an empty address that began with “1PuQB.”

Additionally, it wired 1,265 BTC, or $74.8 million, to the address “1Jbez,” which on Arkham Intelligence is identified as a Mt. Gox cold wallet. The money hasn’t changed since then. 

The significant action may indicate that Mt. Gox is getting ready to give more Bitcoin to its creditors, who have been holding out for their money since the exchange’s 2014 breach and collapse.

Alex Thorn, Galaxy’s chief of research, has a different opinion.

According to Thorn, only $74.5 million of the transferred funds are meant to be disbursed; the remaining amount would be placed in “fresh cold storage” that is still under the estate’s ownership.

Either way, this is the first significant Bitcoin transfer from Mt. Gox since July 30, when within the course of three hours, Mt. Gox sent 47,229 BTC to three unidentified wallets. 

At the time, BitGo, a cryptocurrency exchange that was one of the custodians assisting the Mt. Gox trustee in returning money to creditors, was suspected by Arkham Intelligence to have received 33,105 Bitcoin to an address.

This wallet sent a test transaction two weeks later and then sent the entire amount to another unidentified wallet address, where it has remained ever since.

At the time of writing, Mt. Gox still possessed a sizeable 46,164 BTC, or about $2.7 billion.

It’s interesting to note that creditors of Mt. Gox seem to have gone against the grain by apparently holding onto their newly obtained Bitcoin.

People who used Bitpanda “were early adopters,” according to deputy CEO Lukas Enzersdorfer-Konrad, who spoke with Cointelegraph earlier in August. Typically because Mt. Gox was one of the primary trades.

For them, Bitcoin is a technology and a philosophy that they firmly believe in, not just an asset. It won’t necessarily mean they won’t sell, but it will influence when and how much they might sell for.

These creditors are choosing to keep onto their coins “primarily due to expectations of future price appreciation, aiming for potentially higher returns,” according to Maria Carola, CEO of cryptocurrency exchange StealthEX, in an interview with Cointelegraph.

She went on to say that while holding onto the money would allow investors to “delay these taxes or await more favorable market conditions,” selling their assets quickly “could mean significant capital gains taxes.”

Bitcoin Price Forecast: This Solana GameFi Crypto Closes At $2 Million, And Mt. Gox Moves $784 Million, Sending BTC Plunging 3%

As of 03:18 a.m. EST, the price of Bitcoin had decreased 3% in the previous day, trading at $59,553 on a 7% decrease in trading volume to $27 billion.

This occurs after 13,265 BTC, or $784 million, were sent to an address connected to the now-defunct cryptocurrency exchange Mt. Gox.

The head of research at Galaxy Digital, Alex Thorn, believes that there may not be any selling pressure resulting from the most recent BTC on-chain shift.

The Price of Bitcoin May Still Rise

According to data from GeckoTerminal, the price of Bitcoin has been consolidating since August 8. BTC is currently trading in a sideways pattern between the $61,000 resistance and the $56,665 support zone.

Since Bitcoin has already surpassed the 50-day Simple Moving Average (SMA), there may be a short-term rally in the currency’s price.

Furthermore, as it shows increasing purchasing pressure, the Relative Strength Index (RSI), which is currently at 51, also appears to be recovering from the 50-midline level.

The price of Bitcoin may surpass the upper bound of the sideways pattern if the buying spree persists. The bulls are aiming for $64,000 and want to break above the 200-day SMA at $62,255.

But, if the price of Bitcoin crosses the pattern’s lower border at $56,645, it may fall much lower to $54,635 in support.