Bitcoin Takes a Hit as Mt. Gox Prepares to Repay Creditors
The cryptocurrency market experienced a downturn on Tuesday, with Bitcoin (BTC) dipping below $63,000 after news emerged that defunct exchange Mt. Gox had begun moving significant amounts of Bitcoin internally. This movement is believed to be part of the exchange's plan to repay creditors who have been waiting for reimbursement for a decade.
Mt. Gox, once the world's largest Bitcoin exchange, went bankrupt in 2014 following a massive hack that resulted in the loss of hundreds of thousands of Bitcoins. The exchange's recent move to transfer 44,527 BTC ($2.84 billion) to an internal wallet sparked concerns about potential mass selling by creditors, leading to a 3% drop in Bitcoin's price.
The decline affected the broader market as well, with Ethereum (ETH) dropping over 2.5% to $3,400, and the CoinDesk 20 Index (CD20) falling over 2% to 2,182.
This event highlights the ongoing impact of Mt. Gox's legacy on the Bitcoin market and the potential for volatility as the exchange progresses with its repayment plan.
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