Earlier this year, Mt. Gox began compensating customers via platforms like Kraken, Bitbank, and BitGo, which had already impacted Bitcoin’s price.
Mt. Gox has transferred a significant portion of its Bitcoin holdings. Speculations have arisen as a result of this event, suggesting that the bankrupt cryptocurrency exchange may be considering the possibility of making Bitcoin refunds to its remaining customers.
Mt. Gox Moves Part Of Bitcoin Holdings
Given the impact of previous repayments on the most prominent cryptocurrency, such a scenario could jeopardize the price surge of Bitcoin. The defunct cryptocurrency exchange has reportedly shifted a portion of its Bitcoin assets, according to data provided by Arkham Intelligence.
After receiving $370,000 BTC from Kraken, Mt. Gox emptied four of its wallets that contained cryptocurrency. The fact that this has happened has led to rumors that the exchange may consider making additional repayments in the near future.
The fact that Mt. Gox continued to possess 44,899 BTC, which is equivalent to $2.85 billion, suggests that the exchange is not yet finished compensating its clients. Kraken, Bitbank, BitGo, Bistamp, and SBI VC Trading were the platforms through which the cryptocurrency exchange started making Bitcoin repayments to its customers earlier this year.
Will This Time Be Different?
As a result, the transfer that took place between Mt. Gox and Kraken provides additional evidence that the defunct cryptocurrency exchange may be considering making additional Bitcoin repayments.
The latest transfers that have jeopardized the Bitcoin price surge take into account the impact of the earlier repayments on the price of Bitcoin. At the start of July, the cryptocurrency lost more than $55,000, which coincided with the time when the cryptocurrency exchange started making refunds to its consumers.
One of the factors contributing to the downward pressure that Bitcoin was under was a surge of sell-offs among these clients. On the other hand, it is important to point out that the German government was also a significant contributor to the price fall that occurred during that time period.
Over the course of three weeks beginning in June, they sold off all of their half a million bitcoins. Despite the potential selling pressure from a potential Bitcoin reimbursement from Mt. Gox, it’s crucial to note that the flagship cryptocurrency is currently experiencing a more optimistic outlook compared to July, when the collapsed cryptocurrency exchange began compensating users.
Therefore, there is a possibility that the market will successfully navigate the current challenges. Ali Martinez, a cryptocurrency researcher recently revealed that Bitcoin whales have sold over 20,000 BTC equivalent to $1.28 billion, within the last 24 hours.
However, this has not had much of an effect on the price, particularly when one considers that the flagship cryptocurrency reached $64,000 during that time period. The macro side is one of the factors contributing to the recent bullish outlook for Bitcoin.
The Federal Reserve of the United States reduced interest rates by fifty basis points (bps) the previous week. On the other hand, the People’s Bank of China (PBoC) lowered interest rates and launched a stimulus strategy on Tuesday in an effort to assist in the revitalization of the Chinese economy.
According to a study by CoinGape, Bitcoin’s price is expected to reach $100,000 as a result of China’s stimulus package and its involvement in cryptocurrency commerce with Russia.
As of the writing of this article, the price of Bitcoin has surged to over $63,700 in the past twenty-four hours. Over this time period, the trade volume has increased by more than 8%, totaling $28.9 billion.
