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BTC Continues to Slide as Mt. Gox Transfers $2.7B in Bitcoin

Bitcoin has slid under $55K as Mt. Gox transfers 47,229 BTC from cold storage

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Bitcoin's price decline is worsening as Mt. Gox transfers $2.7 billion worth of BTC to a new wallet.

The bankrupt Japanese crypto exchange, which previously announced that distributions would commence in July, transferred 47,229 BTC from cold storage according to Arkham.

141,687 BTC worth nearly $8.1 billion remains to be repaid. In May, Mt. Gox transferred over 140,000 BTC, worth $9 billion at the time, to a new wallet.

Trustee Nobuaki Kobayashi said the transfer was part of the exchange's plans to repay creditors.

Mt.Gox Transfers $9B Bitcoin to New Wallet as Part of Repayment Plans
72 Mt. Gox-related wallets sent 141,686 BTC to a wallet named “1Jbez” - trustee Nobuaki Kobayashi confirmed the transfer was part of the exchange’s repayment plans

"The Rehabilitation Trustee is preparing to make repayment for the portion of cryptocurrency rehabilitation claims to which cryptocurrency is allocated... As the Rehabilitation Trustee is proceeding with the preparation for the above repayments, please wait for a while until the repayments are made," the trustee stated.

Last month, the trustee said it had completed all the necessary steps to begin issuing repayments.

Mt. Gox trustee Nobuaki Kobayashi said creditor repayments would commence i

Mt.Gox, which derived its name from "Magic: The Gathering Online EXchange" as it began as a trading platform for the collectable card game, was responsible for over 70% of Bitcoin transactions back in 2014. That year, the platform suffered a hack in which it lost 850,000 BTC. At the time, its value was $450 million; it's now worth over $7 billion.

Blockcast EP 22 | Mt Gox’s Mark Karpeles on The Hack That Shaped The Crypto Industry
Mt Gox first launched in the summer of 2010 but suspended operations in February 2014 after 750,000 Bitcoins went missing

The price of Bitcoin has fallen more than 13% over the last five days to lows not seen since February of under $55,000.

Yesterday, brn analyst Valentin Fournier highlighted how Bitcoin has dropped below its 200 day average and could fall as low as $52,000.

"Ten days ago, Bitcoin rebounded at the 200 EMA (58,200)," he said. "We indicated that the weekly RSI and the double top formation could lead to a drop to a support level as low as 52,000."

"After a brief bounce that lacked momentum, Bitcoin has returned to this support level, and a break below it could trigger significant ETF outflows, compounded by selling pressure from Mount Gox and the German government," Fournier said.