tl;dr
Recently, Mt. Gox wallets were active in transactions ahead of pending repayments of $9 billion worth of Bitcoin (BTC) and Bitcoin Cash (BCH). Arkham Intelligence flagged the activity in three wallets associated with the now-defunct exchange. The largest transaction involved a mere $24 worth of Bitc...
Recently, Mt. Gox wallets were active in transactions ahead of pending repayments of $9 billion worth of Bitcoin (BTC) and Bitcoin Cash (BCH). Arkham Intelligence flagged the activity in three wallets associated with the now-defunct exchange. The largest transaction involved a mere $24 worth of Bitcoin, with the funds being transferred to several exchanges for repayments.
The pending repayments have significantly impacted the cryptocurrency market, with Bitcoin's price plunging over the past month. The German government's offloading of Bitcoin to major crypto exchanges has also contributed to the market downturn.
The impending Mt. Gox repayments, representing approximately 0.7% of the current Bitcoin in circulation, have raised concerns about potential selloffs by creditors, which could exert short-term pressure on Bitcoin prices. JPMorgan analysts predict that the selloff could lead to a short-term decline in crypto prices, but a rebound from August onwards. The liquidations and anticipated Mt. Gox payments hint at a potential expedited Bitcoin crash, with creditors standing to gain almost 100 times their initial investment.
In recent hours, several Mt. Gox wallets were involved in transactions ahead of the pending repayments of $9 billion worth of Bitcoin (BTC) and Bitcoin Cash (BCH). These transactions were flagged by Arkham Intelligence, which identified activity in three wallets associated with the now-defunct exchange. The Mt. Gox “Doomsday” is approaching this month and could possibly lead to a heightened Bitcoin price crash as BTC extended to $57,000 today.
MT. GOX ACTIVATES WALLETS IN PREPARATION FOR REPAYMENT
The largest of the latest transactions involved a mere $24 worth of Bitcoin. Historically, significant movements of Mt. Gox funds have involved consolidations into a few main wallets. In this case, a wallet that once held $24 of Bitcoin as an intermediary forwarded the small amount to another wallet. This wallet then sent the funds to Bitbank’s hot wallet, according to Arkham Intelligence data.
Moreover, the remainder of the Bitcoin was transferred to a new wallet. For context, Bitbank is among the crypto exchanges designated to facilitate Mt. Gox repayments. Rather than being sent directly to Bitcoin holders, the funds will be distributed to five exchanges. These include Bitstamp, Bitstamp, Bitbank, SBI VC Trade, and Bitgo. Moreover, these exchanges have assured customers that the funds will be accessible within up to 90 days from receipt. However, the nature of these small transactions raises questions about whether they serve as tests for larger transfers. The trustee previously indicated that repayments would begin in early July. However, the exact dates for the fund repayments to exchanges remain undisclosed.
The anticipation of these repayments has significantly impacted the cryptocurrency market. Over the past month, Bitcoin’s price has plunged by over $12,000. At press time, the Bitcoin price was $57,675, marking a 4.19% drop in the last 24 hours.
WHAT’S NEXT FOR BTC PRICE?
The impending Mt. Gox repayments, amounting to $9 billion, represent approximately 0.7% of the 19.7 million Bitcoin currently in circulation. This significant stake heightens fears of selloffs by creditors eager to realize their profits, given that Bitcoin was priced around $600 when Mt. Gox collapsed. Today, creditors stand to gain almost 100 times their initial investment.
James Butterfill, CoinShares’ Head of Research, expressed concern over the market impact of this substantial Bitcoin release. He remarked, “With the announcement that the Trust will begin selling in July, investors are understandably worried.”
Similarly, JPMorgan analysts have weighed in on the potential impact of Mt. Gox creditors liquidating their holdings. They predict that the selloff could exert short-term pressure on Bitcoin prices. In a recent research note, JPMorgan analysts stated, “Assuming most of the liquidations by Mt. Gox creditors take place in July, this creates a trajectory where crypto prices come under further pressure in July, but start rebounding from August onwards.”
Furthermore, the Bitcoin long liquidations hit $77.67 million amid German government’s offloading and anticipated Mt. Gox payments. This hints at an expedited Bitcoin crash. In addition, a point to note is that BTC was worth only $600 when Mt. Gox collapsed in 2014, leaving creditors with 100x profits. Hence, they could realize these profits immediately after the payout, which could cause a
More about Banco De Chile
Banco De Chile, Banco de Chile, provides banking and financial products and services to clients in Chile. The company is headquartered in Santiago, Chile.
Industry: FINANCE, COMMERCIAL BANKS
Sector: NEC
Market Cap: 11457347000
PE Ratio: 7.69
EPS: 8.08
Dividend Yield: 2.95
Average Volume: 5711.6
Price to Book: 0.487
Revenue: 2884828922000
Gross Margin: 24.07
Net Profit Margin: 0.12
Operating Margin: 0.118