Again Mt.Gox moves its Bitcoins and BCH, and so many expect a collapse in the cryptocurrency market. At least we can expect some severe volatility over the next few days.
Hang on, Mt.Gox moves its wealth
The infamous Mt.Gox crypto exchange, which went bankrupt in 2014, along with 850,000 bitcoin users, moved another large batch of the remaining funds to consolidated wallets.
The other day it looked like it has moved 16,000 BTC and 16,000 BCH to two separate addresses, according to the monitor of the cold wallet Mt.Gox.
16 000 BTC transferred to the following address:
Meanwhile, 16,000 BCH moved to this address:
That is the first time that Mt. Gox has transferred any of its coins since February.
What to expect this time?
Recall that in the period from December 2017 to February 2018 Mt. Gox sold Bitcoins and Bitcoin Cash for almost half a billion dollars.
Mt.Gox sold the cryptocurrency in several large chunks. Every time the stock exchange sold its reserves, the crypto market recorded sharp price drops.
“It appears that the Mt. Gox trustees have moved the funds to a wallet belonging to an exchange desk,” said Ivo Jonkers, a cryptocurrency analyst.
“The last time this happened, Mt. Gox proceeded to sell the funds at market rate, practically sending the entire market in the red”
“I wouldn’t be surprized if this happens again,” he suggested.
The current market value of bitcoins is about $ 150 million.
The sale of such a large number of bitcoins can have a significant impact on the cryptocurrency market.
Tokyo Mt.Gox withdrew from business in 2014, losing about 1 million of its bitcoins. At that time, the lost bitcoins cost approximately $ 387 million, but the prices for cryptocurrency have since increased significantly.
Maybe panic is not entirely appropriate?
Trustee Mt.Gox Nobuaki Kobayashi previously claimed that the movement of cryptocurrency from purses with cold storage of bankrupt exchange did not affect the price.
“Following consultation with cryptocurrency experts,
I sold BTC and BCH, not by an ordinary sale through the exchange, but in a manner that would avoid affecting the market price
while ensuring the security of the transaction to the extent possible,” Kobayashi said in March.
“Please refrain from analyzing the correlation between the sale of BTC and BCH by us and the market prices of BTC and BCH based on the assumption that the sale was made at the time the BTC and BCH were transferred… as such an assumption is incorrect.”