Defunct cryptocurrency exchange Mt. Gox appears to have transferred roughly $75.36 million value of Bitcoin to Bitstamp crypto exchange in what appears to be a preparatory move for one more round of payouts to its creditors, data from on-chain analytics platform Arkham Intelligence shows.

Wider Crypto Market Tumbles After Mt. Gox Bitcoin Transfers

The Japan-based cryptocurrency trading platform moved 1264.71 BTC – value $75.36 million – to Bitstamp’s wallet address at 8:49 AM UTC, August 21, 2024. 

Subsequently, the crypto market witnessed mixed price motion as Bitcoin (BTC) was down by 0.3% within the last 24 hours. In the identical vein, other leading digital assets by market cap, corresponding to Ethereum (ETH), rose by a meager 0.1%, while BNB tumbled by 2.7%, Solana (SOL) plummeted by 1.8%, and XRP fell barely by 0.3% in the identical period.

Related Reading: Mt. Gox Bitcoin Distribution Nears Its End Following $2 Billion Move, How Much Is Left?

The full crypto market cap fell from $2.12 trillion to $2.06 trillion, down by 2.7% within the last 24 hours. When it comes to liquidations, CoinGlass data shows that $87.80 million value of liquidations occurred prior to now 24 hours.

One other Creditor Payout On The Way?

It’s no surprise that crypto traders get alarmed every time a major crypto deposit hits an exchange, and the $75 million BTC transfer to Bitstamp exchange isn’t any exception. Nevertheless, unlike other random transfers, there are reasons to imagine that outward transfers might indicate that one other creditor payout is on its way. 

Interestingly, the exchange also transferred 13,264 BTC – value $784.20 million – to an unknown wallet on August 20, 2024. Details of the recipient’s identity remain unclear.

It needs to be recalled that Mt. Gox trustees nominated Bitstamp as one in every of the crypto exchanges to distribute the outstanding payouts owed to the hacked crypto exchange’s creditors. In July 2024, some creditors of the collapsed cryptocurrency exchange expressed joy because the long-awaited payout process finally commenced.

Nevertheless, not all is hunky-dory on the subject of the exchange’s creditor payouts, as crypto traders fear that an industry-wide sell-off could possibly be on the cards despite the reassurance by creditors that they are going to hold on to their digital assets. 

Despite the rise in concerns toward weakening price-action attributable to payouts to creditors, data from on-chain analytics provider CryptoQuant shows that the reimbursed Mt. Gox creditors are inclined to HODL Bitcoin fairly than dumping it out there. 

Alex Thorn, head of research at Galaxy Digital, has noted that it’s likely that almost all of the creditors imagine in Bitcoin’s long-term outlook and possess a “deep understanding” of the technology.

That said, the impact of the newest Bitcoin transfer from Mt. Gox on the digital assets market within the short to medium term stays to be seen. The exchange still holds over 34,000 BTC, priced at over $2 billion based on the present market price.

Featured image from Unsplash, Chart from TradingView.com