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Bitcoin lost over 3% in value on July 16 due to the reemergence of FUD involving the bankrupt crypto exchange Mt. Gox. Data from TradingView showed that Bitcoin’s price movement, which reached $65,000 on centralized exchanges, was under pressure. The crisis occurred as Bitcoin from Mt. Gox’s rehabilitation program was transferred between wallets.
What is Happening with Bitcoin?
According to data from blockchain analysis platform Arkham, the total amount moved from Mt. Gox’s cold wallet reached 92,000 Bitcoin, valued at approximately $5.7 billion, constituting about two-thirds of the exchange’s total assets. On-chain data analysis platform Look Into Bitcoin shared the following on X:
“Mt. Gox moved 44,527 Bitcoin to an internal wallet 5 minutes ago, possibly preparing for repayment.”
Mt. Gox created a harmful effect on the price when similar events occurred over a decade ago, leading to repayments to creditors who initially lost their assets, causing markets to fear massive Bitcoin sales. However, some believe these fears do not align with reality.
Popular crypto investor and YouTuber Quinten Francois noted in a response on X that this process could initiate the next phase of FUD. The selling pressure that has scared markets in recent weeks also came from the German government, whose seized Bitcoin stocks are now depleted.
Important Details Regarding the Issue
The panic disrupted Bitcoin’s best performance in months. The BTC/USD pair last reached $65,000 on June 21, a significant level as it represents Bitcoin’s short-term cost basis.
The cost basis for speculators, also known as the realized price, traditionally acts as support in bull markets and was last breached in August 2023. Look Into Bitcoin determined the short-term cost basis to be $64,835 as of July 15.
