Mt. Gox’s Compensation Is Negatively Impacting Bitcoin Price With $9 Billion Moving On Chain

Key Points:

• Capriole Investments’ founder, Charles Edwards, reported an unprecedented $9 billion Bitcoin transfer from Mt. Gox.
• The bankrupt exchange will soon begin repaying users affected by the 2014 cyber theft of up to 950,000 bitcoins.
• Bitcoin’s price fell 4.5% to $60,000 amid broader market declines and concerns over potential selling pressure from Mt. Gox’s compensation.

Charles Edwards, founder of Capriole Investments, highlights on social media platform X a historic movement of Bitcoin on the blockchain, amounting to $9 billion.

Historic $9 Billion Bitcoin Transfer from Mt. Gox’s Compensation

The transfer, originating from Mt. Gox, signals the impending compensation process for the bankrupt exchange’s users.

Mt. Gox, the Tokyo-based Bitcoin exchange that collapsed in 2014 after losing between 650,000 to 950,000 Bitcoins in cyber thefts, is set to begin reimbursing nearly $9 billion to thousands of affected users. MT. Gox’s compensation is causing confusion for some short-term Bitcoin investors.

Bitcoin (BTC) recently experienced a 4.5% decline, dropping to $60,000 within 24 hours, amid a wider downturn in the cryptocurrency market. The drop was exacerbated by $13 million in outflows from U.S. spot Bitcoin ETFs on Tuesday and concerns over potential selling pressure from Mt. Gox’s compensation.

Mt. Gox Is Bringing Volatility to Bitcoin

Despite the negative impact on Bitcoin’s price, Mt. Gox’s compensation is seen as a long-awaited relief for hack victims who have endured years of uncertainty. Last week, Bitcoin slid to $59,000 in its second-largest weekly decline of the year.

QCP Capital anticipates that the release of up to 140,000 BTC from Mt. Gox could further weigh on market sentiment, especially given the uncertain timeline for distribution.

The Mt. Gox hack in 2011, which saw hackers steal 25,000 Bitcoins valued at approximately $400,000, marked one of the earliest and most significant cryptocurrency assessed. At its peak, Mt. Gox handled nearly 70% of global Bitcoin transactions.