After a decade-long wait, creditors have received their due bitcoin (BTC) and bitcoin cash (BCH). The distribution is done via cryptocurrency exchanges Bitstamp and Kraken.
But when customers verified the payments from the exchange to their wallets, it had a significant impact on the cryptocurrency market, causing the price of Bitcoin to drop by about 4%.
Mt. Gox Distributes Millions of Dollars to Bitstamp and Kraken
Wallet addresses affiliated with Mt. Gox began transferring $2.85 billion in Bitcoin early Tuesday morning.
On-chain data from blockchain analytics platform Arkham shows that Mt. Gox transferred $2.85 billion worth of bitcoins to a new wallet. The transfers were primarily made to deliver $340.1 million, or 5,110 BTC, to four different Bitstamp addresses.
Bitstamp is one of five exchanges that work with the Mt. Gox Trustee to help creditors recover cash, alongside Kraken and Japanese exchanges Bitbank and SBI VC Trade. Notably, Mt. Gox still holds 85,234 BTC, worth around $5.70 billion.
Users in the Reddit community have confirmed receiving bitcoins back from Mt. Gox using Kraken. Bitstamp users have said they have not yet received their allocation.
Kraken said in an earlier statement that the Mt. Gox trustee had given them $3 billion, or 48,641 bitcoins. To fully credit these funds to user accounts, they calculated it would take 7-14 days.
Crucial Support Area for Bitcoin
Following the Mt Gox payment, market data research platform CryptoQuant found that the price of Bitcoin (BTC) has been corrected in the past few hours. According to the business, this correction affected 1-3 month BTC holders.
CryptoQuant emphasizes the necessity of tracking support levels. It emphasizes the $63,600 range, which is the average purchase price of Bitcoin holders over the previous 3-6 months.
Additional observations supplied by analyst Ali Martinez point to a probable double-bottom pattern with positive relative strength index (RSI) divergence on lower time frames for Bitcoin. If confirmed, Bitcoin might return to $67,600, assuming the important support level of $66,000 remains solid.
Martinez highlighted a crucial support area for Bitcoin between $63,440 and $65,470 by examining on-chain statistics. Around 1.89 million addresses in this category simultaneously purchased 1.23 million BTC, indicating the crucial importance of this sector in the coming days.
Featured image from DALL-E, Source: TradingView.com
