Mt. Gox was found to have transferred most of their Bitcoin holdings. The development sparked speculation that the shuttered crypto exchange might be making BTC refunds to waiting customers. If true, this could pose a risk to Bitcoin's upside, given how previous refunds have impacted the major cryptocurrency.
Data from Arkham Intelligence shows that the defunct crypto exchange has transferred some of their BTC holdings. Mt. Gox has emptied four of their wallets after receiving 370,000 BTC from Kraken. This sparked speculation that the exchange might be preparing to make more repayments in the near future. Mt. Gox still holds 44,899 BTC ($2.85 billion), which indicates that the exchange has not finished making refunds to their customers.
These crypto exchanges started paying Bitcoin back to customers earlier this year through Kraken, Bitbank, BitGo, Bistamp, and SBI VC Trade. Therefore, the transfer between Mt. Gox and Kraken further indicate that these exchanges may be planning to make more BTC refunds.
This latest move poses a risk to Bitcoin's upside, given the impact of previous refunds on BTC's price. The price of BTC had fallen below $55,000 in early July, around the time the exchange started making refunds to customers.
This wave of selling among customers contributed to the downward pressure faced by Bitcoin. However, it should be noted that the German government also played a large role in the fall in prices during that period. They sold all of their 50,000 BTC within three weeks starting in June.
Although the Bitcoin reimbursement by Mt. Gox could potentially put selling pressure on the price of Bitcoin, keeping in mind that this major crypto is now in a more optimistic mood than it was in July when the exchange started paying back customers. Therefore, the market may be able to withstand the impact better this time.
For example, crypto analyst Ali Martinez recently revealed that the Bitcoin whale cluster has sold more than 20,000 BTC ($1.28 billion) in the last 24 hours. However, this barely affected the price, especially when Bitcoin rose to $64,000 during the period.
The recent positive view of Bitcoin stems from several factors, including the macroeconomic side. Last week, the US Federal Reserve cut interest rates by 50 basis points (bps). Meanwhile, on Tuesday, the People's Bank of China (PBoC) announced rate cuts and stimulus policies to help revive the country's economy.
At the time of writing, BTC price is trading around $63,700, up over the past 24 hours. Trading volume also increased by over 8%, with $28.9 billion traded during this period.
The development sparked speculation that the shuttered crypto exchange might be making BTC refunds to waiting customers. If true, this could pose a risk to Bitcoin's upside, given how previous refunds have impacted the major cryptocurrency.
