Bitcoins value plunges to 55 following Mt Gox portfolio activity

Mt. Gox, known for its financial collapse, recently made a significant Bitcoin transfer, moving 47.229 Bitcoins worth around US$2.71 billion to a new wallet address. This event occurred amidst a new decline in the Bitcoin market, with the value of the cryptocurrency falling to US$55,407.18, showing a 6% devaluation recently. The transfer was registered at 12:30 UTC on July 5 and comes from what is called “cold storage.” This move is part of Mt. Gox’s planning to start payments to its creditors this month, with the promise to return a total of US$8.5 billion in Bitcoin. The preparations for these payments were confirmed on June 24 by Nobuaki Kobayashi, the administrator of Mt. Gox. However, there is a division of opinions in the market on the impact of these refunds. Some analysts express concern about the possibility of a large Bitcoin sale, which could further pressure the price of the cryptocurrency. Nevertheless, Alex Thorn of Galaxy Digital offers a more optimistic view, suggesting that many of Mt. Gox’s creditors tend to be long-term holders, which could reduce the risk of a massive sale. Mt. Gox’s last significant activity was on May 28, when it transferred nearly $7.3 billion worth of Bitcoin to an unknown address. After this movement, the Bitcoin price suffered a 7% reduction. The current price reflects a weekly decline of 10%.