🧐Mt. Gox Transfers $1 Billion BTC, Is Bitcoin's Rise Coming to an End?
Recently, the cryptocurrency exchange Mt. Gox, which had previously suffered theft and later went bankrupt, has shown new developments, creating a subtle atmosphere of tension in the Bitcoin market.
On March 6, one of Mt. Gox's wallets (1PuQB) transferred 11,834 Bitcoins worth $1.07 billion to a mysterious address (1Mo1nW). This is no small amount! It also transferred 166.5 Bitcoins, valued at over $15 million, to another cold wallet (1Jbez). As a result, Bitcoin's price has declined from a high of $91,000 and is currently hovering around $87,000.
Why is the market tense? Because the last time Mt. Gox made such a large-scale transfer was in December 2024, when Bitcoin had just surpassed $100,000. At that time, it transferred 27,871 Bitcoins worth $2.8 billion!
After that, it also made several transfers, such as $100 million on December 19, $89 million on December 23, and $420,000 on January 30. Each transfer caused some fluctuations in Bitcoin's price, and this time was no exception, with the price briefly dropping to $93,000, but it quickly rebounded.
Why is Mt. Gox causing such turmoil? In fact, it is repaying debts. Backtracking more than a decade ago, Mt. Gox suffered a massive hack that resulted in the theft of up to 950,000 Bitcoins, severely injuring its operations and leading to a downward spiral.
By July 2024, it initiated a process to repay debts using Bitcoin and Bitcoin Cash (BCH), initially planned to conclude in October of that year; however, reality has proven quite challenging.
On one hand, there is a large number of creditors, and the repayment process is complicated and tedious; on the other hand, frequent system failures have led to chaotic situations with duplicate records for some creditors' deposits. Unable to proceed, the debt repayment plan has been postponed until October 2025.
The good news is that as of now, 17,000 creditors have successfully received repayments, and in the coming months, more creditors will gradually receive their payments.
In conclusion, Mt. Gox's transfer of $1 billion in Bitcoin has caused some minor fluctuations in the market, but Bitcoin's price is also under selling pressure. However, everyone should pay close attention to this Friday's White House cryptocurrency summit, as such favorable actions could impact market trends at any time.
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