In a swift series of transactions on July 16, Mt. Gox transferred over 140,000 Bitcoin, amounting to nearly $9 billion, igniting significant market volatility.

According to Arkham Intelligence, Mt. Gox still retains 138,985 BTC in its primary wallet, valued around $8.7 billion, marking the first movement of these funds in two weeks. The transfer involved two substantial transactions: nearly 96,000 BTC, worth over $6 billion, were moved to two undisclosed wallets, while an initial 44,527 BTC was directed to a known Mt. Gox cold wallet.

Significant Fund Transfers in Brief Period

In just three hours, the total volume of Bitcoin transactions by Mt. Gox on July 16 reached approximately 190,000 BTC, translating to over $12 billion. An unidentified address, ending in “BHDct9b,” received 42,587 BTC worth $2.69 billion. Additionally, 4641.24 BTC, valued at $293.94 million, was transferred to the Mt. Gox cold wallet.

The “BHDct9b” address has yet to transfer the 42,587 BTC, but the resulting market apprehension has caused a dip in Bitcoin’s value as sentiment shifted.

Shortly thereafter, another 48,641 BTC was moved to a different unknown address, reallocating an additional $3.07 billion from the main Mt. Gox wallet.

Read more: Bitcoin Cash Tumbles Amid Mt. Gox-Led Sell-Off and Liquidity Concerns

Market Reaction and Price Fluctuations

On July 16, Bitcoin’s price surged to almost $65,000 but swiftly declined to around $63,000 within hours. This 3% drop in Bitcoin’s value triggered a broader market sell-off, causing over 5% declines in altcoins such as Uniswap (UNI), Polkadot (DOT), and Bitcoin Cash (BCH).

The downturn in market sentiment began an hour before the initial Mt. Gox transaction and continued as more Bitcoin outflows were observed.

Implications of Mt. Gox Repayment

Mt. Gox had announced on July 5 that it would commence repaying its Bitcoin and Bitcoin Cash debts to creditors. The repayments are to be made through designated crypto exchanges, with Nobuaki Kobayashi, the Rehabilitation Trustee, overseeing the process.

The announcement assured that the remaining rehabilitation creditors would receive their funds “promptly” once the necessary conditions were met.

Given the significant outflows from the main Mt. Gox wallet on July 16, these repayments might be actualized before August, fulfilling the promise of timely restitution.