While Bitcoin hovered above $70,000 on Monday, it started losing value since early Asian hours on Tuesday in anticipation of selling pressure. Behind this decline lies a movement that has a great impact in the cryptocurrency market: Mt. Transfer of approximately 107,000 Bitcoins from Gox wallets to an unknown address.

Mt. Gox was once the largest Bitcoin exchange in the world. However, he went bankrupt in 2014 when it was revealed that he lost hundreds of thousands of Bitcoins as a result of a hacking attack. Since then, creditors have been waiting for the repayment of the Bitcoins they held. It has been talked about for a long time that this situation would create selling pressure in Bitcoin markets.

The latest transfers were carried out in thirteen separate transactions. There appears to have been a test transaction at $3 on May 20. Earlier on Tuesday, a larger transaction took place, a Bitcoin transfer worth $160. The remaining transactions involved Bitcoin worth between $1.2 million and a jaw-dropping $2.2 billion.

The purpose of these transfers is not yet clear, but market analysts, based on Bitinfocharts data, Mt. Gox’s Bitcoins are now moved to a single wallet. This move is likely to be part of a plan to redistribute assets to creditors before October 31, 2024.

CryptoQuant head of research Julio Moreno confirmed that all transferred Bitcoins were moved to a new address, “1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6”. Galaxy research head Alex Thorn stated that he predicts that most of the transferred Bitcoin will be held by creditors rather than sold on the open market.

However, market participants seem to be approaching this situation cautiously. Following the transfer news, Bitcoin has lost 1.4% since the start of Asian trading hours. It fell from its peak of over $70,000 on Monday to $67,680 as of Tuesday.

It is difficult to predict what this situation means for the Bitcoin market. Some analysts are concerned that the release of large amounts of Bitcoin could create selling pressure. However, according to another view, these transfers may be a preparation phase for repayment to creditors. Creditors may choose not to dispose of their Bitcoins but keep them for the long term. In this case, the supply in the market may decrease, which may cause the Bitcoin price to move upwards.

Mt. Gox transfers on the Bitcoin market will become clearer in the coming days. However, this move once again reveals how volatile the cryptocurrency market can be. Investors need to be careful in such situations and do their own research.