CoinDesk Report:
As Mt. Gox moves $2.7 billion worth of Bitcoin to a new wallet, the Bitcoin price decline is intensifying.
According to Arkham, the bankrupt Japanese cryptocurrency exchange previously announced distribution starting in July, transferring 47,229 BTC from cold storage.
A remaining 141,687 BTC, valued at nearly $8.1 billion, still awaits repayment. In May, Mt. Gox moved over 140,000 Bitcoin (then valued at $9 billion) to a new wallet.
Trustee Nobuaki Kobayashi stated this transfer is part of the exchange’s plan to repay creditors.
“The rehabilitation trustee is preparing to make a partial distribution of cryptocurrency to the creditors… Please wait for a while until the repayment is made, as the rehabilitation trustee is preparing for the aforementioned distribution,” the trustee said.
Last month, the trustee stated all necessary steps to begin repayments had been completed.
Trustee Nobuaki Kobayashi indicated creditors will commence receiving repayments.
Mt. Gox, short for “Magic: The Gathering Online Exchange,” originally a trading platform for collectible card games, was responsible for over 70% of Bitcoin transactions by 2014. That year, the platform suffered a hack losing 850,000 Bitcoin, valued at $450 million then, now worth over $7 billion.
Bitcoin prices have fallen over 13% in the past five days, dropping to the lowest level since February, below $55,000.
Yesterday, analyst Valentin Fournier highlighted Bitcoin breaking below the 200-day moving average, potentially falling to $52,000.
“Bitcoin rebounded 10 days ago at the 200-day moving average ($58,200),” he said. “We point out that the weekly RSI and double top pattern could lead to support dropping to the $52,000 low.”
Fournier added, “Bitcoin has returned to this support level after a brief lackluster rebound, a drop below which could trigger significant ETF outflows, exacerbated by selling pressures from Mt. Gox and the German government.”