This Could Be The Reason For The Recovery In Bitcoin Price In The Last Hour

A wallet that held over $2 billion worth of Bitcoin linked to the infamous Mt. Gox exchange moved most of those funds to a separate wallet on Tuesday, according to data from Arkham Intelligence.

After detecting what appeared to be a test transaction, Arkham Intelligence noted in a post on X that the wallet likely belonged to cryptocurrency exchange BitGo. The move could indicate that the long-running Mt. Gox incident is nearing its final stages.

“A wallet that received $2.19 billion in Bitcoin from Mt. Gox has started test transactions,” the data firm’s statement read, adding: “This wallet, bc1q26, is likely BitGo, the fifth and final exchange working with the Mt. Gox Trustee to distribute funds to Mt. Gox creditors. Is it about to distribute funds to creditors?”

A few hours later, the bc1q26 wallet sent around $2 billion worth of BTC to another wallet.

Today’s activity may indicate that the repayment of Mt. Gox creditors is finally nearing completion. Throughout July, Mt. Gox transferred billions of dollars worth of BTC to designated crypto exchanges including Bitbank, Kraken, Bitstamp, and SBI VC Trade. These exchanges were then tasked with distributing the BTC to Mt. Gox creditors.

Bitcoin price reacted positively to the latest development and rose by around 2.5% in the past hour to return above $61,000.

*This is not investment advice.