Mt. Gox Transfers 45,511 Bitcoins to Repay Creditors, BTC Selloff Looms

Crypto exchange Mt. Gox has recently moved a staggering 45,511 Bitcoins in the past two hours while preparing for the next phase of creditor repayment. After a strong 5% drop yesterday, the Bitcoin price is now flirting around $66,000 down by a minor 0.5% at press time.

Mt. Gox Transfers $3.15 Billion in BTC to New Wallets

As per data from Spot on Chain, crypto exchange Mt. Gox has moved 45,511 Bitcoin to three different wallets worth a staggering $3.15 billion. As per the previous activities, it is very likely that Mt. Gox will move these BTC to centralized exchanges in order to repay the creditors.

Since July 5, the crypto exchange has transferred a total of 61,559 BTC worth $3.88 billion for creditor repayment to exchanges such as Kraken, Bitstamp, and SBIVC. Interestingly, there have been reports that crypto exchange Kraken has denied BTC payout to some of the Mt. Gox creditors despite the identity verification.

🔴 Mt. Gox moved 45,511 $BTC ($3.15B) to 3 new wallets in the past 2 hours!

Based on past activities, Mt. Gox may soon move parts of these $BTC to CEX to repay creditors.

Since July 5, 2024, Mt. Gox has transferred a total of 61,559 $BTC ($3.88B) to #Bitstamp, #SBIVC and… https://t.co/x3XrPCA2Xr pic.twitter.com/FkzPl2LP7M

— Spot On Chain (@spotonchain) July 31, 2024

Throughout the creditor repayments this month, the Bitcoin price has shown strong volatility. However, it faced strong rejection at $70,000  and has slipped back to $66,000 on late Monday.

Also Read: Donald Trump Raises $25M From Bitcoin Conference 2024

BTC Remains Stable Before FOMC Meeting

All eyes of investors are currently on the FOMC meeting scheduled on Wednesday, July 31. After the early-week sell-off, the Bitcoin price showed some stability at around $66,000 as investors waited for the Fed’s commentary on inflation and economic growth.

Macro indicators would play a key role in determining the Bitcoin price action moving ahead. The baseline scenario is currently a slow decline in inflation and growth, with the chances of recession not so high, as per data from BloFin.

They also noted that there’s a negative gamma in the $65,000 to $70,000 price range. This gamma will primarily drive the options expiring on August 2, which has dominated the BTC options market. Furthermore, with the weekly expiry approaching, BloFin expects the volatility to intensify further. On the other hand, Bitcoin whales have been on strong accumulation amid the current price drop.

3. The GEX data reveals a substantial negative gamma between $65k and $70k, exacerbating price volatility. This negative gamma is primarily contributed by options expiring on Aug 2, which dominate the BTC options market. As the expiration date approaches, market price… pic.twitter.com/Bnlepe1Jbu

— BloFin Academy (@BloFin_Academy) July 30, 2024

Also Read: Franklin Templeton Eyes Solana as Next Crypto ETF Offering