Bitcoin's value dipped by 2% on May 28 after significant movements of BTC from wallets associated with the defunct Mt. Gox exchange to an unknown address, totaling over $7 billion

On May 28, Bitcoin experienced a 2% decline after wallets tied to the collapsed crypto exchange Mt. Gox moved 107,547 BTC, valued at nearly $7.3 billion, to an unknown wallet. This massive transfer is part of the defunct exchange's plan to return Bitcoin holdings to creditors ahead of the October deadline.

Blockchain tracking service Whale Alert noted the movements in a series of X posts, highlighting six substantial on-chain transactions ranging between 3,999 BTC and 32,499 BTC. These transactions occurred between 1:41 am and 4:46 am UTC, according to blockchain explorer Arkham Intelligence. Most transfers moved 2,000 BTC at a time, all converging to a single, unlabeled address now holding 107,547 BTC.

The sudden and sizable movement of funds has not been clarified by Mt. Gox trustee firm Nagashima Ohno and Tsunematsu, which did not immediately respond to inquiries regarding the reasons or destination of the transferred Bitcoin.

Following the transfers, Bitcoin's price fell from $69,374 to $67,875, as reported by CoinMarketCap. This drop aligns with warnings from K33 Research analysts last month, who predicted that the movement of Mt. Gox-era Bitcoin could "spook the market" and exert downward pressure on prices.

The Mt. Gox exchange, which collapsed in 2014 due to multiple unnoticed hacks, owes over $9.4 billion in Bitcoin to approximately 127,000 creditors. These creditors have been waiting for over a decade to reclaim their funds. The final repayment deadline is set for October 31, with the trustee beginning to verify creditor identities and exchange accounts for repayment as of January.

This latest development adds to the ongoing saga of Mt. Gox's bankruptcy and repayment process, reflecting the broader impacts that large, sudden movements of Bitcoin can have on market stability and investor sentiment.