On Tuesday, Mt. Gox appears to have freshly transferred over $2 billion to a new address. Data from Arkham Intelligence indicates that Mt. Gox moved 33,105 BTC, worth around $2.19 billion, to an address beginning with “bc1q26.”
However, the owner of this address remains unidentified.
Mt. Gox Distribution
The latest transaction follows previous transfers of billions of dollars worth of bitcoin to designated crypto exchanges such as Bitbank, Kraken, Bitstamp, and SBI VC Trade over the past few weeks. Arkham data shows that wallets linked to Mt. Gox still contain about $5.29 billion.
Last week, Bitstamp revealed that it would start distributing assets to Mt. Gox creditors. Meanwhile, Kraken reported that it had “successfully distributed” BTC and Bitcoin Cash (BCH) to customers affected by the hack that caused the collapse of the former Japanese exchange a decade ago.
More recently, the Mt. Gox trustee released a statement announcing that repayments in BTC and BCH were made to specific creditors through designated crypto exchanges on July 5, 16, and 24. The trustee also noted that more than 17,000 creditors had received repayments as of July 24.
Mt. Gox was once the world’s largest crypto exchange, managing over 70% of all bitcoin transactions globally. It filed for bankruptcy in February 2014 following the theft of 850,000 BTC by hackers. Subsequently, a rehabilitation proposal was approved in 2021, promising to return approximately 90% of the assets owed to affected customers.
Long-Term Holders Mitigate Sell-Off Pressure
Glassnode’s findings indicate that while the long-awaited Mt. Gox distribution marks a significant victory for creditors who fought hard to be reimbursed in bitcoin rather than fiat currency, the substantial price increase over the past decade suggests that some sell-side pressure from recipients is inevitable.
However, the blockchain intelligence platform observed that the creditor profile leans towards long-term investors, which may mitigate the sell-off pressure in the coming weeks.
Additionally, the balance sheet of long-term holders continues to grow, and their share of network wealth remains high compared to previous market peaks. This indicates that the dominant market behavior has shifted towards HODLing, with seasoned investors holding onto their coins in anticipation of higher prices.
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