Mt. Gox Bitcoin Moves Will Cause No Immediate Selling Pressure: CryptoQuant

Analysts from market intelligence platform CryptoQuant say Bitcoin's (BTC) recent moves through defunct cryptocurrency exchange Mt.Gox are not cause for concern and will not cause any immediate selling pressure on the digital asset.

According to the latest weekly news a report From the analytics company, the transfers were carried out between the addresses of the Mt.Gox trustees and are not a sign of the start of repayment of creditors.

There is no reason for alarm

On May 27, on-chain analysts observed the movement of 138,000 BTC, worth roughly $9.4 billion in BTC trading value at the time, from wallets it had held since 2018. CryptoQuant said the transfers occurred within five hours, raising concerns among the community. cryptocurrencies regarding the impact of such transactions.

Cryptocurrencies were transferred via seven different transactions with volumes ranging from 4,000 to 32,000 bitcoins. The entire cache was initially moved to one address before being distributed to three different addresses. At the time of writing, each address held 47,400 Bitcoin.

The cryptocurrency community has speculated that the transfers mark the beginning of distributions to Mt.Gox's creditors. CryptoPotato It was reported that BTC lost 4% of its value as news of the transfers spread. Community members also raised concerns about asset prices falling further if the exchange's creditors decided to liquidate their holders immediately after receiving them.

Contrary to what the majority of the community believes, the new addresses that received bitcoins belong to Mt.Gox's rehabilitator, the lawyer who manages the process of repaying creditors.

Payments to Mt.Gox's creditors have not commenced

An announcement dated May 28 said the exchange had not begun making payments to creditors and had not sold any bitcoin or cryptocurrency in this regard.

“The type of transfer, where the entity consolidates a large amount of Bitcoin spread across several addresses into a few addresses, appears to be a precursor to the trustee starting to repay creditors under the rehabilitation plan. How long it will take for repayment to begin is not yet clear,” CryptoQuant said.

Hence, CryptoQuant analysts believe that the transactions will not cause any immediate selling pressure for BTC as the assets in question are not yet available for the open market.