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Mt. Gox

Mt. Gox Sends $75 Million In BTC To Bitstamp Exchange, Sell-Off Ahead?

Ash Tiwari
by Ash Tiwari
1 year ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Defunct cryptocurrency exchange Mt. Gox appears to have transferred approximately $75.36 million worth of Bitcoin to Bitstamp crypto exchange in what seems to be a preparatory move for another round of payouts to its creditors, data from on-chain analytics platform Arkham Intelligence shows.

Wider Crypto Market Tumbles After Mt. Gox Bitcoin Transfers

The Japan-based cryptocurrency trading platform moved 1264.71 BTC – worth $75.36 million – to Bitstamp’s wallet address at 8:49 AM UTC, August 21, 2024. 

Mt. Gox BTC Transfer Bitstamp
BTC transfer from Mt. Gox to Bitstamp | Source: Arkham Intelligence

Subsequently, the crypto market witnessed mixed price action as Bitcoin (BTC) was down by 0.3% in the last 24 hours. In the same vein, other leading digital assets by market cap, such as Ethereum (ETH), rose by a meager 0.1%, while BNB tumbled by 2.7%, Solana (SOL) plummeted by 1.8%, and XRP fell slightly by 0.3% in the same period.

Related Reading: Mt. Gox Bitcoin Distribution Nears Its End Following $2 Billion Move, How Much Is Left?

The total crypto market cap fell from $2.12 trillion to $2.06 trillion, down by 2.7% in the last 24 hours. In terms of liquidations, CoinGlass data shows that $87.80 million worth of liquidations occurred in the past 24 hours.

crypto market cap
Crypto market cap, 1-day chart | Source: TOTAL on TradingView.com

Another Creditor Payout On The Way?

It’s no surprise that crypto traders get alarmed whenever a significant crypto deposit hits an exchange, and the $75 million BTC transfer to Bitstamp exchange is no exception. However, unlike other random transfers, there are reasons to believe that outward transfers might indicate that another creditor payout is on its way. 

Interestingly, the exchange also transferred 13,264 BTC – worth $784.20 million – to an unknown wallet on August 20, 2024. Details of the recipient’s identity remain unclear.

It should be recalled that Mt. Gox trustees nominated Bitstamp as one of the crypto exchanges to distribute the outstanding payouts owed to the hacked crypto exchange’s creditors. In July 2024, some creditors of the collapsed cryptocurrency exchange expressed joy as the long-awaited payout process finally commenced.

However, not all is hunky-dory when it comes to the exchange’s creditor payouts, as crypto traders fear that an industry-wide sell-off could be on the cards despite the assurance by creditors that they will hold on to their digital assets. 

Despite the rise in concerns toward weakening price-action caused by payouts to creditors, data from on-chain analytics provider CryptoQuant shows that the reimbursed Mt. Gox creditors tend to HODL Bitcoin rather than dumping it in the market. 

Alex Thorn, head of research at Galaxy Digital, has noted that it’s likely that most of the creditors believe in Bitcoin’s long-term outlook and possess a “deep understanding” of the technology.

Related Reading: Bitcoin Shrugs Mt. Gox Fears: Why Is Daily BTC Exchange Inflow So Low?

That said, the impact of the latest Bitcoin transfer from Mt. Gox on the digital assets market in the short to medium term remains to be seen. The exchange still holds over 34,000 BTC, priced at over $2 billion according to the current market price.

Featured image from Unsplash, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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