Defunct cryptocurrency exchange Mt.Gox is moving Bitcoin from its cold wallet to new wallet addresses, triggering panic across the cryptocurrency market.
Data from Arkham Intelligence shows that the Mt.Gox cold wallet has moved 91,755 BTC, valued at more than $5.8 billion, from its cold wallet. The coins were transferred to four wallet addresses.
Following the recent transaction, the Mt.Giox wallet holds $8 billion worth of Bitcoin, according to the Arkham tracker.
Mt.Gox Moves Bitcoin Ahead of Repayments
The recent move comes as the Mt.Gox Rehabilitation Trustee prepares to reimburse creditors. This exchange shut down in 2014 after a major hack. A decade later, creditors will have a chance to regain their funds.
On-chain analytics platform Lookonchain notes that the recent transfer shows the exchange is preparing to repay creditors.
This is not the first time the Mt.Gox wallet has recorded some activity this week. Earlier this month, the exchange’s cold wallet moved another $2.7 billion worth of Bitcoin to cryptocurrency exchange platforms, with some creditors returning their funds.
The activities around the Mt.Gox cryptocurrency wallet have created market uncertainty about the possibility of creditors dumping their coins in the market.
Some believe most of the coins will end up in the market as the creditors have been waiting for repayments for over a decade.
However, YouTuber Quinten Francois states that crypto traders should not panic because of the recent selling activity. Francois noted that news around the Mt.Gox exchange was “the next Bitcoin FUD” where traders will panic and cause BTC’s price to drop.
The news around possible selling by Mt.Gox creditors comes after a wallet address belonging to the German government dumped $3 billion in the crypto market last week. BTC price dropped to a two-month low as a result.
Bitcoin Holds Steady
Bitcoin has barely reacted to the news around Mt.Gox moving Bitcoin from its cold wallet. BTC was trading at $63,538 on July 16 as of 06:48 a.m. EST.
BTC has been on a notable uptrend this week, with the rally mainly being driven by positive news around Republican presidential contender Donald Trump. The coin currently sits at a gain of nearly 10% over the past week.
The recent gains around Bitcoin stem from high buying pressure, with the Relative Strength Index (RSI) briefly crossing the 70 mark on July 16. However, the RSI has since dropped to around 50, showing that some traders have sold to scoop profits.
The bullish sentiment is further seen with the Moving Average Convergence Divergence (MACD) line, which remains below the signal line.
However, the MACD histogram bars remain negative, showing that some selling action has occurred.
