Bitcoin encountered downward pressure early Tuesday as the troubled exchange Mt. Gox initiated a significant transfer of over $9 billion worth of the digital asset to its creditors.

According to reports from Arkham, a research and analytics firm, more than 140,000 bitcoins were moved from wallets linked to Mt. Gox to a new wallet by early Tuesday. This development represents a long-awaited step for creditors who have been awaiting repayment since the exchange's collapse in 2014.

Expressing anticipation of imminent distribution to creditors, possibly within the next few days or weeks, Alex Thorn, head of research at Galaxy, shared insights on the social-media platform X.

However, the sudden movement of funds appeared to unsettle traders, contributing to a decline in Bitcoin's value. Bitcoin, denoted by the symbol BTCUSD, experienced a 1.8% drop to $68,377 in recent trading sessions, reaching a low of $67,433.

Commenting on the situation, Alex Kuptsikevich, senior market analyst at FxPro, suggested that the event created temporary pressure on the markets, as recipients of the assets might opt to sell them immediately. Nonetheless, Kuptsikevich noted that this selloff could mark the resolution of a longstanding concern in the market.

The transfer from Mt. Gox-linked wallets is seen as a significant milestone in the journey toward resolution for creditors, who have been patiently waiting for repayment for nearly a decade. This development sheds light on the complexities of the cryptocurrency ecosystem and underscores the importance of transparent and efficient processes in addressing past grievances. As the market absorbs the impact of this transfer, investors will closely monitor Bitcoin's movements and the broader implications for market sentiment and stability.