- Lookonchain spotted transaction activities on the Mt. Gox wallet.
- Bitcoin slipped below significant support following the Mt. Gox minor transfer.
- Crypto users suspect Mt. Gox is preparing for the BTC distribution
The Lookonchain crypto analytics platform spotted transaction activity on the Mt. Gox wallet in the early hours of Monday. In a recent post on X (formerly Twitter), the analytics platform noted that the wallet transferred a relatively small amount of Bitcoins, 0.021 BTC, worth $1,390, to a new wallet.
Meanwhile, Mt. Gox currently holds 90,344 BTC, equivalent to $6.11 billion, and crypto users suspect the recent transfer may be in preparation for the long-awaited repayment to customers affected by the crypto exchange hack several years ago.
Bitcoin fell below the 0.786 Fibonacci retracement level on the daily chart in an early reaction to the development. The flagship crypto dropped 1.85% over a short period after rallying 28% in about two weeks, following the price decline resulting from a BTC selloff by the German government.
Monday’s dip marks the second time Bitcoin has pulled back in the past six days after dropping 4.3% last week before continuing upward. Last week’s dip happened after Mt. Gox transferred over $5.8 billion in BTC to an unknown wallet, with users suspecting preparations for the expected BTC distribution to the exchange’s erstwhile customers.
Notably, many crypto community members expect the Mt. Gox repayment exercise to trigger a selloff in the Bitcoin market. This expectation stems from the belief that most beneficiaries may want to cash in on the accumulated profit from their crypto assets, considering how much BTC has appreciated over the years.
If this occurs, Bitcoin might experience a price dip similar to what happened during the recent selloff by the German government. However, crypto analysts predict the scenario might be different, as some institutional investors have already bought the debt from the original crypto owners. Such investors are prone to holding assets for long periods. Hence, they may not be eager to sell off their BTC after receiving it from Mt. Gox.
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