Mt.Gox Moves $7B BTC for Repayment Plans, Sparking BTC Plunge

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Mt. Gox, the defunct Bitcoin exchange, has transferred over 107,000 BTC worth around $7 billion to an unknown address in thirteen transactions, possibly as part of a plan to repay creditors by October 31, 2024. The market reacted bearishly to these movements, with Bitcoin (BTC) dropping by 1.7% to as low as $67,680 after reaching a high of over $70,000 on Monday.

The first movement of assets from Mt. Gox's cold wallets in over five years and is likely a part of a plan to distribute the assets back to creditors before October 31, 2024. CryptoQuant head of research Julio Moreno said all coins have been transferred to a new address “1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6.” Alex Thorn, head of research at Galaxy, said most of the transferred bitcoin (BTC) would be held by creditors, instead of being sold on the open market.

Technically, Bitcoin (BTC) is in a consolidation zone as buyers are reacting to Mt. Gox repayments plans to the once defunct BTC Exchange. The Relative Strength Index (RSI) of 55.68 signifies BTC is poised for trend reversal in the long term.