Bitcoin Slides as Mt. Gox Gets Ready for Creditor Repayments

Bitcoin Faces Selling Pressure Amid Mt. Gox Internal Coin Movements

Bitcoin, the leading cryptocurrency by market capitalization, has encountered renewed selling pressure following reports of internal coin transfers associated with the defunct Mt. Gox exchange.

Mt. Gox's Creditor Repayments

According to on-chain data, the collapsed exchange has initiated fund transfers, signaling a potential new round of creditor repayments. These repayments could trigger a potential mass sell-off by creditors who have been awaiting reimbursement for almost a decade.

Impact on Bitcoin's Price

The news has caused Bitcoin's price to decline by 3%, briefly dipping below $63,000 after it had reached $65,000 during Asian trading hours.

Mt. Gox's Internal Movements

The decline in Bitcoin's value stemmed from a small transfer of 0.021 BTC ($1,000) from a wallet linked to Mt. Gox to an external blockchain address. This was followed by a significant transfer of 44,527 BTC, valued at approximately $2.84 billion, to an internal wallet. Arkham Intelligence tracked the data, suggesting that these movements are part of a repayment plan.

Background on Mt. Gox

Mt. Gox was once the dominant Bitcoin exchange worldwide, but it collapsed in 2014 following a significant hack that resulted in the loss of hundreds of thousands of BTC. Since July 4, the exchange has been engaged in the process of repaying its creditors.

Wider Cryptocurrency Market Impact

The drop in Bitcoin's price has had an impact on the broader cryptocurrency market. Ether, the second-largest digital asset by market capitalization, declined by over 2.5%, trading around $3,400.

Top altcoins have also experienced losses, while memecoins like PEPE and FLOKI have shown resilience, surging in value.