This decline could be attributed to fear of potential sell pressure on Bitcoin due to the massive inflow of BTC from Mt. Gox’s repayment.
Bitcoin’s price slumped for the fourth consecutive trading day after Mt. Gox moved a sizable amount of BTC to a new wallet, possibly readying for the proposed repayment.
According to CoinMarketCap data, the flagship cryptocurrency dropped by over 4% to $53,600, the lowest level since February 26. This decline could be attributed to fear of potential sell pressure on Bitcoin due to the massive inflow of BTC from Mt. Gox’s repayment.Mt. Gox Repayments Create Concern Among Investors
An update from Arkham Intelligence revealed that Mt. Gox moved 47,228 BTC coins worth $2.6 billion from cold storage to a new wallet address at 12:27 AM UTC.
This transfer is likely in preparation for the repayment plan, which will reimburse 140,000 BTC worth $7.73 billion, 143,000 BCH, and the Japanese yen to creditors.
The Mt. Gox transfers have created a bearish response from investors, likely contributing to BTC’s price decline. Some investors believe creditors will be keen on disposing of their BTC tokens, leading to further price decline.
