Mt. Gox Moves Record-Breaking $2.4 Billion in Bitcoin as Price Surpasses $100,000

On December 5, cryptocurrency exchange Mt. Gox made a significant move by transferring over 24,000 Bitcoin (BTC) worth nearly $2.5 billion to an unknown address.

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The Unexpected Transfer

According to data from Arkham Intelligence, the exchange moved 24,051 BTC to an untagged address starting with ‘1N7j’ at 2:45 am UTC on December 5. This was the first transfer made by Mt. Gox since November 12.

Timing of the Transfer

Mt. Gox’s move came just 12 minutes after Bitcoin crossed $100,000 and less than half an hour before it hit a high of $104,000 on Coinbase at 3:08 am UTC, as per TradingView.

Possible Reasons Behind the Move

The reason behind Mt. Gox’s decision to move part of its holdings is currently unknown. However, past similar moves have been associated with giving payouts to creditors. Since Mt. Gox fell into bankruptcy in early 2014, it has been working on repaying its creditors.

Implications for Bitcoin

Such moves are usually seen as bearish for Bitcoin, as it could mean billions worth of the cryptocurrency are heading to those who might sell after being unable to access their Bitcoin for over a decade. This has raised concerns among investors and analysts about potential sell-side pressure on the market.

Analysts’ Views

However, some analysts argue that the sell-side pressure from Mt. Gox payments is overblown because the market has already priced them in. They point out that the market has been aware of these payouts for years and have factored it into their prices.

Creditors’ Reactions

Mt. Gox creditors can receive their payouts in Bitcoin, and many creditors polled on Reddit in July after the exchange’s first payout said they weren’t rushing to sell their stack.

Extension of Repayment Deadline

In October, the Mt. Gox trustee managing the huge Bitcoin sumpushed the deadline to repay creditors to October 31, 2025 – extending it by a full year. The trustee stated that many creditors "still have not received their repayments because they have not completed the necessary procedures for receiving repayments."

Current Holdings

The exchange still holds 39,878 BTC worth around $4.1 billion after its latest move, according to Arkham Intelligence data.

Related Developments

In related news, Hut 8, a cryptocurrency mining company, announced plans to raise up to $500M to buy Bitcoin as a strategic reserve asset.

Conclusion

The transfer of over 24,000 Bitcoin by Mt. Gox has raised concerns among investors and analysts about potential sell-side pressure on the market. However, some analysts argue that the market has already priced in these payouts and that they will not have a significant impact on the price of Bitcoin. The exchange’s current holdings stand at 39,878 BTC worth around $4.1 billion.

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