Mt. Gox Transfers $2 Billion Worth of Bitcoin to OKX

According to PeckShield Alert’s on-chain maintenance, an address labeled Mt. Gox transferred 33.1K BTC worth around $2 billion to a new address starting with bc1qpn…7k53. In addition, 117 BTC worth $7 million was moved to the OKX crypto exchange from the same address in 24 hours.

This transaction comes on the heels of a previous transfer where Mt. Gox transferred $2 billion worth of Bitcoin to BitGo. These moves are part of the final stages of creditor repayments as the exchange works diligently to meet its obligations.

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Mt. Gox has made significant progress in its funding events, with the process nearly 70% complete. Up until now, $3.2 billion worth of Bitcoin has been distributed to approximately 17,000 creditors. Despite these major changes, Bitcoin’s price has remained stable and is currently trading around $61,000. The market has also seen a liquidity surge of $2.5 billion, driven by inflows from USDT and USDC stablecoins.

It is noteworthy that Bitcoin’s price has consolidated despite the large transfers. However, the market appears to be able to absorb these large transactions without significant volatility, likely due to the liquidity of stablecoins like USDT and USDC. Ace Mt. Gox continues to complete its payouts, its effectiveness above Bitcoin’s price and market action will be closely monitored.

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Mt. Gox, the defunct cryptocurrency exchange, will return $73 million worth of BCH to its former customers. This amount represents over 20% of BCH’s daily trading volume.

Contrary to fears that the bankruptcy redemptions might negatively impact BTC prices, Presto Labs suggests the impact will be minimal. Instead, BCH is expected to face significant selling pressure. Chung notes that BCH’s daily trading volume, approximately $308.8 million, means the $73 million redemption will account for about 24% of this volume.

Chung’s analysis indicates that the selling pressure on BCH will be four times greater than on BTC, given that BCH’s daily trading value is only 1/50th of BTC’s. This disparity suggests BCH will experience more pronounced price volatility as a result of the redemptions.

In an interview with CoinDesk, Chung explained that many BTC holders have already sold their claims on bankruptcy markets over the past ten years. This has likely left only the most committed BTC holders, or “diamond-handed BTC bulls,” as the remaining creditors.

Chung also pointed out that BCH was created three years after Mt. Gox’s bankruptcy, making it less relevant to the creditors. As a result, many creditors may treat the BCH redemption as an airdrop and sell it immediately.

For traders looking to capitalize on this scenario, Chung recommends a market-neutral strategy involving long BTC perpetuals paired with short BCH perpetuals, despite potential funding rate risks. He also suggests other approaches, such as shorting term futures or borrowing BCH in the spot market, to mitigate these risks.

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