The defunct Japanese cryptocurrency exchange Mt. Gox is making headlines as it transfers a substantial amount of Bitcoin to facilitate a $9 billion payout to creditors. On July 31, the exchange moved 45,511 Bitcoins, valued at approximately $3.15 billion, into three new wallets. This movement, tracked by Spot on Chain, indicates preparations for distributing payments to creditors.
Large Bitcoin Transfers to Major Exchanges
Since July 5, Mt. Gox has shifted a total of 61,559 BTC, worth $3.88 billion, to major exchanges like Kraken, Bitstamp, and SBIVC. These transfers aim to settle outstanding claims from creditors. However, Kraken has encountered issues with some Bitcoin payouts, despite having verified the identities of the creditors.
The recent transactions have influenced Bitcoin’s price, causing it to fluctuate. The cryptocurrency briefly dropped to $66,000 and showed minimal volatility, declining by 0.5% at press time. Bitcoin struggled to maintain a bullish run toward $70,000, leading to a price pullback.
Upcoming FOMC Meeting and Market Sentiment
Investors are now focusing on the Federal Open Market Committee (FOMC) meeting scheduled for July 31. The meeting will provide insights into the Federal Reserve’s stance on inflation and economic growth, which could potentially impact Bitcoin’s price. Current market sentiment suggests a slow decline in inflation and growth, with a low likelihood of a recession.
According to BloFin data, there is a negative gamma in the $65,000 to $70,000 range affecting Bitcoin options expiring on August 2. This situation may increase volatility as the expiration date approaches. Despite the recent price drop, Bitcoin whales continue to accumulate BTC, indicating strong interest in the cryptocurrency amidst current market conditions.
As investors await the FOMC’s decision, Bitcoin’s price stability and the impact of Mt. Gox’s payouts will remain key factors in determining future market movements.
