After a decade-long wait, creditors of the now-defunct Bitcoin exchange Mt. Gox have finally started receiving their owed Bitcoin (BTC) and Bitcoin Cash (BCH) via the Kraken exchange and Bit stamp cryptocurrency exchanges.
However, it had a noticeable impact on the cryptocurrency market, contributing to a nearly 4% drop in the price of Bitcoin after users confirmed deposits into their wallets from exchanges.
Mt. Gox Distributes Millions To Bitstamp And Kraken
Early Tuesday morning, wallet addresses linked to Mt. Gox initiated a transfer of $2.85 billion worth of BTC.
According to the chain data from blockchain analytics platform Arkham, Mt. Gox moved $2.85 billion in BTC to fresh wallets, with the primary goal of distributing 5,110 BTC, equivalent to $340.1 million, to four different Bitstamp addresses.
Bitstamp is one of five exchanges that has partnered with Mt. Gox custodian to facilitate the return funds exchange’s creditors, including Kraken and Japanese exchanges Bitbank and SBI VC Trade. Interestingly, Mt. Gox still holds 85,234 BTC, valued at about $5.70 billion.
Although some users in the Reddit community have confirmed receiving Bitcoins returned by Mt. Gox via Kraken, Bitstamp users have reported that they have not yet received their allocations.
Kraken had it before announced Successfully received creditor funds from the Mt. Gox custodian in the amount of over $3 billion or 48,641 BTC, estimating a duration of 7-14 days for the funds to be fully deposited into user accounts.
Critical Support Zones for Bitcoin
Following the Mt. Gox withdrawals, market data analysis platform CryptoQuant has noticed the price correction that BTC has experienced over the past few hours, with the firm noting that this has affected the BTC holders’ line for a period of 1-3 months.
Cryptoquantum underlines the importance of monitoring support levels, with particular attention to the $63,600 level, which is the average purchase price of Bitcoin for 3-6 month bond holders.
On the other hand, cryptocurrency analyst Caleb Franzen has noticed Bitcoin is returning to a familiar support zone, which has proven effective. Despite the ephemeral setback, Franzen says Bitcoin has been showing a pattern of higher highs and higher lows in the miniature term, indicating resilience amidst the current price volatility.
Further insights provided by analyst Ali Martinez point to a potential double bottom pattern with a bullish Relative Strength Index (RSI) divergence on the lower time frame for Bitcoin. If confirmed, Bitcoin could rebound to $67,600 provided the critical support level at $66,000 holds.
Delving into the chains dataMartinez highlights a key support zone for Bitcoin between $63,440 and $65,470. During this range, around 1.89 million addresses collectively purchased 1.23 million BTC, underscoring the importance of this zone as a key area to monitor in the coming days.
Featured image from DALL-E, chart from TradingView.com
