Bitcoin Price- Mt. Gox Cold Wallet Exodus Triggers 3% Bitcoin Price Decline
Bitcoin Price– Bitcoin (BTC) fell by over 3% on July 16, dropping to $63,851, amid renewed concerns dubbed as ‘FUD’ related to the defunct exchange Mt. Gox.
Bitcoin Faces Pressure as Mt. Gox Wallet Activity Sparks Concerns
Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin’s price faced pressure after reaching $65,000 on Bitstamp. The decline coincided with movements of Bitcoin from Mt. Gox between wallets associated with its rehabilitation efforts.
According to Arkham, approximately 92,000 BTC (about $5.7 billion) were transferred out of Mt. Gox’s cold wallet, constituting about two-thirds of its holdings. Onchain analytics from Look Into Bitcoin noted a recent transfer of 44,527 BTC ($2.84 billion) to an internal wallet, potentially in preparation for repayments.
These developments, tied to Mt. Gox’s distribution of refunds to creditors from its hacking over a decade ago, negatively impacted Bitcoin prices amid concerns over potential mass sell-offs. Some observers, however, downplayed these fears, dismissing them as unfounded. Concurrently, sell-side pressures in recent weeks were also attributed to the depletion of confiscated BTC stocks by the German government, as reported by Cointelegraph.
Bitcoin’s Strong Rally Stalls Amid Concerns Over $65,000 Level and Holder Cost Basis
The heightened concern disrupted what had been arguably Bitcoin’s strongest performance in months. BTC/USD last reached $65,000 on June 21, a crucial level representing Bitcoin’s short-term holder cost basis. This metric, also known as realized price, traditionally acts as a support level during bullish market phases and was last breached in August 2023. According to Look Into Bitcoin, the short-term holder cost basis stood at $64,835 as of July 15.
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