Mt. Gox Creditors Begin Withdrawing Owed Bitcoin And BCH Funds Via Kraken And Bitstamp

After a decade-long wait, creditors of the now-defunct Mt Gox Bitcoin exchange have finally begun receiving their owed Bitcoin (BTC) and Bitcoin cash (BCH) via the Kraken and Bitstamp crypto exchanges. 

However, this had a notable impact on the cryptocurrency market, contributing to a nearly 4% drop in the price of Bitcoin after users confirmed the deposits to their wallets from the exchanges. 

Mt. Gox Distributes Millions To Bitstamp And Kraken

On an early Tuesday morning, wallet addresses linked to Mt. Gox initiated the transfer of $2.85 billion worth of BTC. 

According to on-chain data from blockchain analytics platform Arkham, Mt. Gox executed the movement of $2.85 billion in BTC to new wallets with the primary purpose of distributing 5,110 BTC, equivalent to $340.1 million, to four distinct Bitstamp addresses. 

Bitstamp is one of the five exchanges that collaborate with Mt. Gox Trustee to facilitate the return of funds to the exchange’s creditors, including Kraken and Japanese exchanges Bitbank and SBI VC Trade. Notably, Mt. Gox still retains possession of 85,234 BTC, valued at approximately $5.70 billion.

While some users within the Reddit community have confirmed the receipt of Bitcoin returned by Mt. Gox through Kraken, Bitstamp users have reported not yet receiving their allocations. 

Kraken had previously announced the successful reception of creditor funds from the Mt. Gox trustee amounting to over $3 billion or 48,641BTC, estimating a timeframe of 7-14 days for the complete deposit of funds into user accounts.

Critical Support Zones For Bitcoin 

In the aftermath of the Mt. Gox payouts, market data analysis platform CryptoQuant has spotted the price correction that BTC has experienced over the past few hours, with the company noting that it has impacted the line of 1-3 month BTC holders. 

CryptoQuant emphasizes the importance of monitoring support levels, specifically highlighting the $63,600 area, representing the average purchase price of 3-6 month bitcoin holders.

Correction occurred due to Mt.Gox issue, reaching the defense line of 1-3 month holders

“As a result, the price temporarily fell and is currently hovering around $66.7k. This price range is very close to the average purchase price of $66.5k for 1-3 month $BTC holders.

If that… pic.twitter.com/MVfvxzerSn

— CryptoQuant.com (@cryptoquant_com) July 23, 2024

Crypto analyst Caleb Franzen, on the other hand, has observed Bitcoin returning to a familiar support zone, which has proven effective. 

Despite the temporary setback, Franzen contends that Bitcoin has displayed a pattern of higher highs and higher lows in the short term, indicating resilience amidst the current price volatility.

Further insights provided by analyst Ali Martinez point to a potential double-bottom pattern with bullish relative strength index (RSI) divergence on lower time frames for Bitcoin. 

On the lower time frames, #Bitcoin is showing signs of a double bottom pattern with bullish RSI divergence. If confirmed, $BTC could rebound to $67,600.

However, the $66,000 support level needs to hold! pic.twitter.com/NBr7xbsyMZ

— Ali (@ali_charts) July 23, 2024

If confirmed, Bitcoin could see a rebound to $67,600, contingent upon the critical support level at the $66,000 holding firm.

Delving into on-chain data, Martinez underscores a crucial support zone for Bitcoin between $63,440 and $65,470. 

According to on-chain data from @intotheblock, a crucial support level for #Bitcoin is between $63,440 and $65,470, where 1.89 million addresses bought 1.23 million $BTC. This zone is key to watch! pic.twitter.com/d51OGATfFd

— Ali (@ali_charts) July 22, 2024

Within this range, approximately 1.89 million addresses collectively purchased 1.23 million BTC, highlighting the significance of this zone as a key area to monitor in the coming days.