Analysts from the market intelligence platform CryptoQuant say the recent bitcoin (BTC) moves by the defunct crypto exchange Mt. Gox are no cause for alarm and would cause no immediate selling pressure on the digital asset.
According to the latest weekly report from the analytics firm, the transfers were executed between Mt. Gox’s trustee addresses and are not a sign that creditor repayments have begun.
No Cause for Alarm
On May 27, on-chain analysts noticed the movement of 138,000 BTC, worth roughly $9.4 billion at bitcoin’s trading value at the time, from wallets holding them since 2018. CryptoQuant said the transfers happened within five hours, sparking concerns amid the crypto community about the effect of such transactions.
The cryptocurrencies were moved via seven different transactions with volumes ranging between 4,000 and 32,000 BTC. The whole stash was initially moved to a single address before being distributed to three different addresses. At the time of writing, the addresses held 47,400 BTC each.
The crypto community speculated that the transfers marked the onset of distributions to Mt. Gox creditors. CryptoPotato reported that BTC lost 4% of its value as news of the transfers spread. Community members also raised concerns about the asset’s price slumping further if the exchange’s creditors decided to liquidate their holders immediately after they received them.
Contrary to what the majority of the community thinks, the new addresses that received the bitcoins belong to Mt. Gox’s Rehabilitation Trustee, which is the attorney managing the creditors’ repayment process.
Mt. Gox Creditor Repayments Have Not Begun
An announcement dated May 28 informed that the exchange has neither begun making repayments to creditors nor sold any BTC or cryptocurrency in that regard.
“The type of transfers, where an entity consolidates a large amount of Bitcoin scattered in several addresses into a few addresses, seems to be the prelude of the Trustee initiating repayments to creditors under the Rehabilitation Plan. How long it would take for the repayments to start is yet to be seen,” CryptoQuant stated.
Hence, CryptoQuant analysts believe the transactions would cause no immediate sell pressure for BTC as the assets in question are not yet available to the open market.
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