Bitcoin Dips Below $63K As Mt. Gox Moves $2.8B BTC to Internal Wallets

BTC drops 3% as bankrupt cryptocurrency exchange Mt. Gox makes a comeback

One observer said the movement of cryptocurrencies was likely part of the exchange’s plan to repay creditors.

Bitcoin {{BTC}} faced renewed selling pressure on Tuesday after blockchain data showed that bankrupt exchange Mt. Gox had begun moving coins in-house for possible repayment to creditors.

The leading cryptocurrency by market value briefly dropped below $63,000, down 3%, after testing the $65,000 level during Asian trading hours, according to CoinDesk.

The drop occurred when the wallet associated with Mt. Gox initially moved 0.021 BTC ($1,000) to the blockchain address: 1EoZd1QNCiN9JbnsqvLRDbHKLygAsXHg3V. The small move, supposedly a test transfer, was followed by a significant move of 44,527 BTC ($2.84 billion) to an internal wallet, according to data tracked by Arkham Intelligence.

According to on-chain detective Lookonchain, the move is likely part of a refund scheme.

Mt. Gox, once the world’s largest bitcoin exchange, went bankrupt in 2014 after losing hundreds of thousands of bitcoins in a hack. The exchange began paying off its debt on July 4, stoking fears of a mass sell-off by creditors who have been waiting a decade for repayment.

Bitcoin’s decline affected the broader market, with ether, the second-largest digital asset by market cap, down more than 2.5% to $3,400. The CoinDesk 20 Index (CD20), a broader market indicator, fell more than 2% to 2,182.