- Mt.Gox cryptocurrency exchange has initiated repayments to creditors in Bitcoin (BTC) and Bitcoin Cash (BCH).
- The exchange transferred billions of dollars worth of BTC through various transactions earlier today.
- Amid these developments, the German government has continued transferring BTC to exchanges.
Latest news on Mt.Gox’s cryptocurrency repayments and the German government’s Bitcoin transactions.
Mt.Gox Begins Bitcoin and Bitcoin Cash Repayments
On Friday, the rehabilitation trustee of Mt.Gox announced the commencement of Bitcoin (BTC) and Bitcoin Cash (BCH) repayments to some creditors. These repayments are being conducted through select cryptocurrency exchanges as part of the established rehabilitation plan. Eligible creditors may receive their repayments once certain conditions are satisfied, including verification of registered accounts, acceptance of terms from the designated exchanges, and completion of discussions with the trustee. However, the trustee requested creditors to be patient during this process.
Complex Transactions Herald Change
The repayment announcement was preceded by Mt.Gox transferring 47,228.7 BTC (approximately $2.71 billion) to a wallet and executing multiple transactions that included sending 1,545 BTC (valued at $85 million) to a hot wallet on the cryptocurrency exchange Bitbank, as per data from Arkham.
German Government’s Bitcoin Transfers Under Scrutiny
Concurrently, the German government transferred 500 Bitcoin (BTC) during a sharp market downturn where BTC’s price plummeted to $54,000. This action sparked fears of a hastened market crash. Additionally, Mt.Gox’s repayments in Bitcoin and Bitcoin Cash fuelled further uncertainty in the market. Arkham Intelligence reported that the recent transfer was directed towards a wallet identified as 139Po…, known for handling the German government’s Bitcoin transactions. This wallet typically receives BTC from the government and transfers it to other addresses, which could potentially lead to significant selling pressure on exchanges.
Government Liquidations Could Affect Market Stability
Currently, the German government’s wallet holds 41,774 BTC, valued at approximately $2.26 billion. In a prior instance on July 4th, the government sold 1,300 BTC through popular cryptocurrency exchanges, totaling around $76 million. This sale led to a rapid drop in BTC price below $58,000, a trend that persisted following the transaction.
Calls for Cessation of Government Bitcoin Sales
In light of these developments, German MP demands the suspension of government Bitcoin sales. Michael Kretschmer, deputy chair of CDU, alongside Federal Finance Minister Christian Lindner and Chancellor Olaf Scholz, were urged by MP Cotar to consider the potential negative impact of continued BTC liquidation. Cotar invited these officials to a conference on October 17th, featuring Bitcoin evangelist Samson Mow, to discuss the unique opportunity BTC presents for asset diversification and its potential as a hedge against inflation and currency devaluation, due to its limited supply.
Conclusion
The initiation of Bitcoin repayments by Mt.Gox and the continued BTC transfers by the German government underscore critical developments in the cryptocurrency sphere. These movements prompt a closer examination of market dynamics and government intervention impacts on digital currencies. The evolving situation necessitates vigilance as stakeholders navigate these financial landscapes.
