Bitcoin Spikes To $61,000 As BitGo Wallet Linked To $2B Bitcoin Transfer Possibly Prepares Mt. Gox Payouts

A crypto wallet that recently received $2 billion in Bitcoin BTC/USD from the trustee of the now-defunct Mt. Gox exchange conducted a test transaction on Tuesday, potentially signaling the start of fund distributions to creditors.

What Happened: Analysts at blockchain analytics firm Arkham Intelligence believe the wallet in question is likely managed by BitGo, a crypto custody platform and one of the five exchanges tasked with distributing tokens to Mt. Gox creditors.

BitGo is reportedly the last remaining distribution partner, according to Arkham.

This may have contributed to Bitcoin spiking 2.9% back above $61,000, as market participants may anticipate distributions ending soon.

The test transaction comes on the heels of a significant transfer two weeks ago, when 33,100 BTC, valued at $2.2 billion at the time, was moved from a Mt. Gox cold wallet that holds funds meant for creditor repayment.

Mt. Gox, once the largest Bitcoin exchange globally, collapsed in 2014 following a massive hack.

Also Read: Bitcoin Long-Term Holders Have Been Accumulating In July, Analysts Report

The distribution of over 140,000 BTC, along with a similar amount of Bitcoin Cash BCH/USD, has been closely monitored by investors who are concerned that creditors might sell their assets after waiting nearly a decade for repayment.

The trustee overseeing Mt. Gox’s assets began the distribution process in early July, an event that led to Bitcoin prices dipping below $54,000.

The exchanges authorized by the trustee for creditor repayments include Bitbank, BitGo, Bitstamp, Kraken and SBI VC Trade.

As of now, Mt. Gox addresses hold 46,000 BTC, down from 141,000 on July 1, according to data from Arkham.

What’s Next: The implications of these distributions, particularly the potential impact on Bitcoin’s market, will be a key topic at Benzinga’s Future of Digital Assets event on Nov. 19, where experts will discuss the ongoing developments and their broader effects on the cryptocurrency landscape.

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