All eyes are on the price of Bitcoin as the coin price yo-yoed over the speculation surrounding massive movements of coins from wallets that used to belong to the now-defunct Mt. Gox exchange.
The corpse of the mighty exchange still had over 160,000 BTC distributed across several wallets, four of which had been emptied of their holdings for a total of 8,000 BTC on May 12.
At present, the price of Bitcoin is holding on to a value just above $8,400 and the market appears stable. However, its trajectory downward showed a very steep drop five times, shedding $15 billion from the coin’s market capital in just over 24 hours.
In late April, several more wallets belonging to Mt. Gox’s trustees were unloaded, causing a panic that caused Bitcoin’s price to shed another $15 billion from its market cap.
It’s quite possible that Mt. Gox moved these funds to a functioning exchange so that they can be sold for USD and the company can pay off its creditors before their next meeting on September 26 this year.
We’re not sure what the trustees’ interest may be in moving these coins, but they all seem to be moving to the same wallet. Time will tell, but for now, it’s just a whale swimming in a mysterious direction.
However, the trustees could not have picked a worse moment in which to move such massive amounts of the cryptocurrency. UPbit, South Korea’s largest exchange, was raided by authorities around the same time, causing a slippery slide downhill for most major coins.
The South Korean government suspects that the UPbit may have been fiddling with its books and mixing customer accounts with accounts belonging to staff.
It bears mentioning that this was just a suspicion and at least one analyst considered the speculative sell-off an overreaction, considering that police in the country have barely begun reporting on their raid.