Mt. Gox Moved $3 Billion in Bitcoin – Will There be Another Price Drop?

Mt. Gox has made yet another significant transaction today, stirring speculation within the cryptocurrency community.

According to data from Arkham Intelligence, Mt. Gox moved 42,229 BTC worth around $3 billion from its cold wallet storage.

In another transfer, the exchange sent 0.021 BTC worth approximately $1,300 to another address believed to be a test transaction.

Although the crypto exchange has announced the start of refunds to affected investors, it has been reported that creditors may have to wait up to three months to receive their payments in Bitcoin or Bitcoin Cash.

According to the trustee’s documents, the timing of these payments depends on the specific crypto exchanges through which creditors have submitted their claims.

After past reports of large transfers by Mt. Gox, a lot of negative sentiment was generated. These were further reinforced by the German government’s initiated Bitcoin sell-off.

These two reasons are believed to have plunged the price of BTC below $55,000, which raises doubts in a lot of investors whether something similar could happen this time around.

CoinShares analysts say that concerns about the impact of the Mt. Gox payout on the crypto market are probably overblown.

In its latest report, CoinShares suggests that many of Mt. Gox’s creditors are likely to hold on to most of their recovered coins to minimize their tax burden. They argue that when a sale does occur, it will likely be spread across various crypto exchanges, allowing sufficient liquidity on the buyer’s side to take the selling pressure.

At the time of writing Bitcoin is priced at $62,865 after a 10% weekly surge and $37.7 billion 24-hour trading volume.