Mt. Gox and US Gov Bitcoin wallets are currently the most watched aspects of the cryptocurrency world. Mt. Gox, a formerly prominent cryptocurrency exchange, filed for bankruptcy in 2014 after losing nearly 850,000 Bitcoins. The ensuing legal battle has recently led to a potential distribution of the remaining assets to creditors, which could have significant implications for the market. Meanwhile, the US government’s Bitcoin wallets have been the subject of speculation as the nation explores the potential use of blockchain technology. As both of these aspects continue to develop, they will undoubtedly affect the future of cryptocurrency.
Bitcoin Investors Keep an Eye on Government-Held Cryptos Amidst Market Volatility
Bitcoin investors are closely monitoring crypto held by the U.S government and trustees of Mt. Gox due to the potential impact transfers of such large amounts may have on market prices. The curiosity stems from both the unknowns surrounding the government’s intentions with the cryptocurrency it has been holding and speculation surrounding the release of the Mt.Gox funds which have been left idle since the exchange was hacked eight years ago. Further speculations were raised by reports last week that blockchain analytics firm, Arkham had traced movements of BTC wallets that had been linked to the U.S. government, which were later revealed to be as a result of a “bug fix.”
According to Glassnode, a blockchain data and intelligence firm, both the U.S. government and the Mt. Gox trustee hold 205,514 and 137,890 Bitcoins, respectively, amounting to over $10 billion in crypto. Experts predict that the impact of large scale transfers of these funds can be market-moving. In the past, the U.S. government has auctioned off such coins which institutional buyers have found quite attractive given that the assets are in theory blessed and cleared by the U.S. Government.
Mt. Gox, once one of the most significant exchanges in the world, was forced to shut its doors in 2014 following a massive cyber-attack that resulted in the loss of 850,000 BTC currently worth $24.9 billion. Investors who lost their funds are still waiting to get them back from the trust. Investors intent on watching large HODLer BTC wallets are keeping an eye on these government funds in particular, given that they are held by an unlikely player such as the U.S. Government.
The buzzing curiosity surrounding such crypto holdings is centered around risk as investors wonder if the U.S. government will hold onto those Bitcoins forever or if and when they decide to sell, whether they will do so in a piecemeal fashion or a large dump or auction the coins off. Similarly, the Mt. Gox trustee has offered no explanation for their prolonged inactivity in transferring these funds back to the investors who lost them.
However, while the two holdings are sending ripples of intrigue through the crypto space, risks remain anyway. The effect that such large amounts of crypto holdings getting transferred will have on the market remains unclear. Yet, given the immensity of the amounts involved, there is excitement that the offloading of these assets to the market will lead to circulation to new holders, and given the fact that the U.S. government has their hands in it, there is no telling what upside the market may benefit from in the future.