Recent on-chain activities suggest that Mt. Gox is gearing up to repay its creditors through the Bitstamp cryptocurrency exchange. Initial test transactions have been executed from Mt. Gox-associated addresses to Bitstamp cold wallets, as reported by blockchain intelligence firm Arkham Intelligence on July 22.
What’s Happening on the Mt. Gox Front?
Mt. Gox has deposited into one to four separate Bitstamp addresses, marking a significant step in the repayment process. Bitstamp is among the five exchanges collaborating with the Mt. Gox Trustee to facilitate these repayments. These transactions are believed to be test runs.
Around 127,000 Mt. Gox creditors have been waiting for over a decade to recover Bitcoin funds now valued at over $9.4 billion. However, the prospect of these repayments has raised concerns among some crypto investors about potential selling pressure, which could negatively impact Bitcoin prices.
Details on the Matter
A survey from the Reddit community indicates that 56% of Mt. Gox creditors plan to hold onto their Bitcoin, while 20% intend to sell. By July 17, over 36% of the Bitcoin owed had already been distributed. Notably, Bitcoin whales have refrained from a buying spree, suggesting a cautious market.
On July 17, a whale unaffected by the selling pressure bought 245 Bitcoin worth approximately $16 million. This address has only conducted two Bitcoin transactions in the past year, netting over $30 million in profit.
Key Takeaways for Investors
Investors should consider the following in light of the recent developments:
- Potential selling pressure from 127,000 creditors could impact Bitcoin prices.
- 56% of creditors plan to hold their Bitcoin, while 20% aim to sell.
- Market behavior of Bitcoin whales suggests a wait-and-see approach.
- Over 36% of Bitcoin owed has already been distributed.
Arkham Intelligence data reveals that the Mt. Gox-labeled wallet currently holds more than 90,300 Bitcoin, valued at $6.12 billion. The exact timeline for when Mt. Gox will resume repayments is still uncertain, but the recent test transactions indicate final preparations are underway.
