Bitcoin Stays At $66,500 Despite Mt. Gox $2.47B Repayment Transfer – What’s the Impact?

Key Takeaways

• Bitcoin hit $68,300 on July 22 but has fallen since.
  Mt. Gox transferred 37,477 BTC worth $2.47 billion as part of its repayment program.
  The extra Bitcoin on the market could push the price down $61,200.

On Monday, July 22, Bitcoin surged to $68,000, marking a dramatic 27% recovery from its July 5 crash. 

As the Mt. Gox sell-off looms, will Bitcoin maintain its price, or is it bracing for a potential impact?

Mt. Gox Transfers $2.47B

On July 24, the now-defunct crypto exchange Mt. Gox continued its Bitcoin transfers, moving 37,477 BTC valued at $2.47 billion to an unknown address, 12Gws9. Additionally, Arkham Intelligence data  reveals that the firm transferred another 5,106 BTC to a separate untagged address.

These transactions are part of ongoing efforts to repay creditors from the 2014 Mt. Gox collapse, involving a total commitment exceeding $9 billion in Bitcoin. The defunct exchange recently moved approximately $2.8 billion worth of BTC on July 23. Additionally, since July 5, it has sent  52,549 Bitcoin worth approximately $3.5 billion to exchanges such as Bitstamp, Kraken, and Bitbank.

At press time, Mt. Gox still held over 90,000 BTC, valued at approximately $5.97 billion. Kraken is the only exchange that has started repaying Mt. Gox claimants. Bitstamp could also soon start repaying users. Kraken’s CEO, Dave Ripley, expressed  appreciation for the Trustee’s efforts in preserving the value of these assets.

BTC Price Analysis 

Since reaching a low of $53,746 on July 5, Bitcoin has rebounded by nearly 28%, peaking at $64,981 on July 16. This recovery included a breakout above the $60,000 level, suggesting further upward potential and a possible bullish trend.

After surpassing the 0.5 Fibonacci retracement level, Bitcoin retraced to this level and rebounded, as anticipated, in a lower-degree correction. By July 22, it peaked at $68,300, likely completing its fifth wave in a five-wave uptrend.

Given the subsequent 4% decline, continued downside movement is possible. If Bitcoin has completed its first five-wave impulse of the next uptrend, it could enter a corrective phase.

The next likely downside target is the 0.618 Fibonacci level at $61,200, representing a potential 7.8% decrease from the current level. However, if the price continues to rise and surpasses the $68,000 area, the onset of the corrective phase may be delayed.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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