Bitcoin, the flagship cryptocurrency surged by 3.2% in price value as Bitgo moves $2 billion of Mt. Gox BTC to another address.
The Defunct Mt. Gox exchange is still in the process of redistributing Bitcoin assets to its creditors via centralized exchanges like Bitgo, Bitstamp and Kraken.
The news of the movement of $2 billion in Bitcoin Assets surprisingly sparked a positive sentiment for Bitcoin because the redistribution process which has been viewed as a Net Negative for Bitcoin Price is gradually coming to an end.
Mt. Gox is left with only $2.81 billion worth of BTC assets from its previous $9 billion.
The Onchain activity was reported by Blockchain analytics firm Arkham Intelligence stating that Bitgo just moved $2 billion of Mt. Gox BTC.
“BREAKING: Bitgo has just moved $2B of Mt. Gox BTC.” Arkham posted
Bitcoin reacted to this significant move of its asset by climbing as high as $61,500 following the bullish sentiment that followed the transaction.
This is because the sentiment around the Mt. Gox distribution of Bitcoin assets to its creditors has changed. Initially this development was viewed as a bearish factor for Bitcoin price because it was expected that many of the Mt. Gox creditors who are sitting on a 10 year profit will sell off their Bitcoin assets upon receiving them.
That has not been the case so far as it turns out that majority of these holders are actually in it for the long term. This factor and the fact that the Mt. Gox redistribution process is nearly over resulted to the bullish sentiment on this issue at the moment.
Altcoins Surge Too
Bitcoin was not the only crypto asset to respond positively to the transaction. A huge chunk of Altcoins also recorded gains following the transaction.
The top altcoins saw similar gains for the day, with Ethereum (ETH) up 3.6 % over the last 24 hours to $2,736 as of press time. The coin hit a daily high of $2,747.
Meanwhile, Solana (SOL) hit a daily high of $149.7 before giving up some of the gains. The coin was up 0.4% over the past 24 hours and trading at $145.73 as of press time.
BNB was also up roughly 1.0 % over the past 24 hours and trading at $526.4 as of press time, while XRP was up over 1.1% to $0.57.
Toncoin (TON), Dogecoin (DOGE), and Cardano (ADA) recorded gains for the day up 7.2%, 1.2%, and 1.2%, respectively.
What to Know
- At press time, Bitcoin is exchanging hands for $60,896 surging by 3.2% in the last 24 hours with a maximum price of $61,539 and a minimum price of $58,451. The crypto asset is down 17.4% from its all-time high.
- Mt. Gox is approaching the end of its over $9 billion worth of BTC assets redistribution to creditors. The now defunct Crypto exchange was once the biggest exchange in the industry before it suffered a severe hack that led to loss of funds.