Mt. Gox Latest Transfer Puts Bitcoin Price Rally at Risk

A few hours before press time, a Mt. Gox-labeled address transferred 2,500 bitcoin (BTC), worth 222 million, to two unmarked addresses, raising concerns among investors.

According to Arkham Intelligence, Mt. Gox cold wallet moved 2,500 BTC to the address “1PQZw2…DDJtK” at around 11:43 p.m. EST on Monday. Subsequently, the receiving address moved the asset to another wallet.

BTC Hits New Peak at $89,864

The latest transfer came as the price of BTC hit yet another all-time high (ATH) this week, reaching $89,864. The latest rally has been fueled by the U.S. election outcome, interest rate cuts, and strong inflows into spot Bitcoin exchange-traded funds (ETFs). BTC has risen over 10% over the past 24 hours and 30% since last week.

While bitcoin is enjoying a bullish ride, the latest move from Mt. Gox has triggered concerns among investors that it might disrupt the asset’s momentum. Such movement from Mt. Gox typically precedes creditors’ repayments, which might result in a significant sell-off.

Mt. Gox’s Transaction History 

A dip in the price of BTC has preceded previous transfers from Mt. Gox. For instance, earlier this month, after the exchange moved over $2 billion worth of BTC, the digital asset dipped below $68,000. Earlier in July, BTC dropped nearly 4% below $59,000 after the exchange moved 47,229 BTC to unknown addresses.

Mt. Gox, once a leading Bitcoin exchange, filed for bankruptcy in 2014 after a devastating hack that resulted in the loss of approximately 850,000 BTC. Since then, around 127,000 affected creditors have been waiting for restitution through a prolonged legal process. This year, the Japanese exchange made significant progress after its trustee, Nobuaki Kobayashi, started distributing funds through partner exchanges. The repayment began in July, marking a decade-long wait for affected creditors.

The crypto exchange recently extended its repayment deadline by one year, from October 31, 2024, to October 31, 2025. According to Kobayashi, the extension will buy unpaid creditors enough time to complete the required procedures to receive their repayments.

Bitcoin is trading at $89,367 at press time, marking a 10% increase on the day.