The crypto asset market declined due to the impact of transfers from wallets belonging to a bankrupt Stock Exchange.
According to data from CryptoQuant and Arkham Intelligence, as of May 28, more than 107 thousand Bitcoins worth over $7.2 billion were moved from Mt Gox wallets, which declared bankruptcy years ago.
Tokyo-based Mt Gox, once the world’s largest Bitcoin exchange, was cyber-attacked in 2011 and went bankrupt in 2014. Last year, US prosecutors accused two Russian citizens of conspiring with others to hack into the exchange’s servers.
Mt Gox’s trustee had said creditors should see basic, interim and early lump sum payments by October 31 as the liquidation process progresses.
After the last transfer, attention turned to whether those who bought Bitcoins would sell.
According to CryptoQuant data, the latest movements seen in Mt Gox wallets marked the first movement seen since May 2018. Mt Gox had approximately 138 thousand Bitcoins.
Previous documents showed that Mt Gox also owned Bitcoin Cash and fiat.
“The effect will be short-term”
BTC Markets Chief Executive Caroline Bowler said the moves are not overly concerning and will only have a short-term impact. “Mt Gox will certainly impact pricing, but it will not have a built-in impact on the price of Bitcoin as the market is currently focused on bipartisan support for crypto-friendly regulations in the US,” he said.
Bitcoin rallied in January, helped by the launch of spot Bitcoin investment funds. Bitcoin reached a record level of $73,798 in mid-March.