Mt. Gox, once the largest Bitcoin exchange in the world and which collapsed in 2014 after being hacked, has made new multi-million dollar moves into the cryptocurrency.
According to an official statement issued by Nobuaki Kobayashi, the trustee of Mt. Gox, new payments were made in Bitcoin and Bitcoin Cash on July 16, reimbursing over 13.000 creditors to date, via designated cryptocurrency exchange platforms.
This move marks an important milestone in the Mt. Gox rehabilitation process, which has kept the platform's creditors on tenterhooks for the past 10 years.
On-chain data confirms these massive movements of Bitcoin and Bitcoin Cash made by the platform. According to Arkham Intelligence, the Mt. Gox Bitcoin wallet transferred a total of 95.869,9 BTC, valued at approximately $6.120 billion, to two separate addresses in the last few hours.
Bitcoin price returns to $63k
The Mt. Gox Bitcoin and Bitcoin Cash refunds are a long-awaited event for the crypto community. However, these massive asset movements are creating a significant impact on the price of Bitcoin.
As data from CoinMarketCap shows, the price of Bitcoin experienced a significant drop following these moves, correcting from $64.900 to $62.570 per BTC. This represents a correction of 3,8% in the last 24 hours.
Source: CoinMarketCap
The volatility that the price of Bitcoin is experiencing after the new payments made by the failed exchange triggered massive liquidations in the derivatives market, with a value of $210 million dollars liquidated, currently.
However, despite the initial correction, the price of the leading cryptocurrency seems to be showing some resilience to these multi-million dollar moves. At the time of writing, the cryptocurrency is trading at around $63.900, recovering 2,1% on Tuesday. Likewise, the price of Bitcoin maintains a weekly growth of 9,8%, according to data from CoinMarketCap.
According to analysts, the cryptocurrency's price chart shows, on the one hand, how Mt. Gox's movements have generated short-term volatility and, on the other hand, how the market might be absorbing the impact better than expected.
Larry Fink, Metaplanet and positive inflows into spot ETFs
The new Mt. Gox refunds are happening against a backdrop of overall positive sentiment in the crypto market. Recently, Larry Fink, CEO of BlackRock, which is currently the largest investment asset manager, declared his firm belief in Bitcoin as a legitimate investment asset.
In a recent interview, Fink described Bitcoin as a “legitimate financial asset” and compared it to “digital gold.” This endorsement from one of the most influential figures in the financial world appears to be offsetting some of the selling pressure generated by the Mt. Gox refunds on the cryptocurrency’s price.
On the other hand, the Japanese company Metaplanet announced a new purchase of bitcoins, with which it has increased its treasury reserves to a total of 225 BTC. With this, Metaplanet is reinforcing its commitment to asset diversification and the narrative of Bitcoin as a long-term store of value asset. As reported by this media, the company decided to make Bitcoin its main treasury asset to protect its value from the weakened Japanese yen.
Likewise, the impact that Mt. Gox refunds could have on the market does not seem to be affecting investor interest in spot ETFs, which saw more than $300 million in positive inflows on Monday.
According to several analysts, the leading cryptocurrency could experience short-term volatility and eventually stabilize and reach new highs. Others warn of the possibility of a longer correction, in case a significant number of the exchange's creditors decide to sell their newly recovered BTC holdings.
Still, the start of these cryptocurrency refunds marks the resolution of an important chapter in crypto history and is being seen as a sign of maturity and growth of the crypto market.
