Sunday, November 27, 2022

The Dormant Bitcoins of Mt.Gox Are in Motion. Is the Bottom Close?

The jig is up on crypto market. But the news tries to prove that this is not the end.

The decline in Bitcoin woke up many dormant wallets and one of them made a large transaction of 10,000 BTC on November 23rd. No one would have paid attention to this operation if the sender had not been a wallet associated with the previously closed and hacked BTC exchange Mt.Gox.

We will remind that this was the largest hack in history that was in 2014 and led to the loss of 744,408 BTC. Later in 2017 BTC exchange operator Alexander Vinnik was arrested in Greece on suspicion of stealing client funds and laundering assets stolen from Mt.Gox.

What happened?

The sender's wallet of 10,000 BTC has been dormant since 2017 and suddenly became active. 6500 coins went to an unidentified wallet and did not move further, and the second part of the amount of 3500 bitcoins was distributed in small transactions to various wallets. Below is a map of these movements.

According to market experts, 99% of the coins are currently on personal wallets outside of centralized exchanges and it is impossible to block them. Presumably, Alexander Vinnik and Alexei Bilyuchenko may be behind the movements. The first one is in the Santa Rita prison in California awaiting trial, and the second one is in the Russian Matrosskaya Tishina pre-trial detention center.

What is the point of this?

Well, the transaction went through, so what? What's up with ordinary users? Many traders believe that these events are part of a kind of market capitulation before a trend change.

What do you think? Is it time to buy or is it better to wait? Do you have your own strategy?


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