Defunct cryptocurrency exchange Mt.Gox, has transferred 24,000 BTC worth about $2.5 billion to an unknown address. The exchange transferred the funds on Thursday, shortly after the price of BTC surpassed the $100,000 price milestone.
According to Arkham Intelligence, the cryptocurrency exchange moved the funds to an address with no former history. In recent times, Mt. Gox has been moving its BTC holdings in an attempt to pay its creditors.Â
Side Note on Mt. Gox
After suffering a multi-million hack in 2014, Mt. Gox slid into bankruptcy, halting users from accessing their funds on the exchange. Meanwhile, the heavy movement of its BTC holdings is widely regarded as a bearish situation that could cause the price of the premier cryptocurrency to dip.
Despite concern about the impact of the massive movement on the price of BTC, there are indications that Mt. Gox would release more assets in their possession as part of the reimbursement process. More so, Arkham revealed the cryptocurrency exchange to have more than 39,878 BTC in its confers, worth about $4.1 billion.
As revealed, the repayment process will extend till next year. Recall that in October, the board of trustees managing the process shifted the deadline by a year, pegging it to October 31, 2025.
The board disclosed that despite the massive movement of funds, most creditors are yet to receive their funds. Further, the trustee added that most affected users had not completed the needed process for claiming the funds.
Likewise, the recent movement of BTC by Mt. Gox coincides with when the cryptocurrency hit the $100,000 price threshold. Currently, BTC is trading at $102,760, reflecting a 146% increase in the last 12 months.
Recent Massive Inflow into the Cryptocurrency Market
Furthermore, the significant price rally of BTC is a broader reflection of how the cryptocurrency market has enjoyed noticeable in-flow. Without a doubt, 2024 has been a progressive year for the digital assets industry due to a host of landmark developments it has recorded.
Earlier this year, the United States Securities and Exchange Commission (SEC) approved applications for BTC and ETH ETFs. By that, the investment instruments provided a pathway for traditional investors to venture into the digital assets sector.
Also, there are indications that XRP, which recently regained its position as the third largest cryptocurrency, could also get its ETF after various investment companies in the US have filed applications with the SEC.
Consequently, the exodus of traditional investors to the cryptocurrency landscape further pushed the sector to a new height. According to Coinmarketcap, the market capitalization of the cryptocurrency sector is worth $3.69 trillion.
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