Mt. Gox Transfers 32,000 BTC to New Wallets, Raising Selling Pressure Concerns
In a move that has rattled the Bitcoin and crypto market, the defunct exchange Mt. Gox initiated a massive transfer of over 32,000 BTC, valued at approximately $2.2 billion. This transfer is part of the company’s repayment plan, with a new deadline set for October 31, 2025.
Mt. Gox Transfers 32,000 BTC to New Wallets
During the night from Monday to Tuesday, Bitcoin and the crypto market experienced a new tremor as Mt. Gox conducted a massive transfer of more than 32,000 BTC, worth about $2.2 billion.
Mt. Gox: Increased Volatility Specter for Bitcoin
The movement of these bitcoins caused the price of BTC to briefly drop below $68,000, a 2% decrease in 24 hours. Although the value of Bitcoin quickly bounced back to $69,000, this fluctuation demonstrates the market’s sensitivity to Mt. Gox’s actions.
This climate of volatility could further intensify as political events, such as today’s U.S. elections, also influence investor behavior. Analysts anticipate price fluctuations of up to $8,000 this week, fueled by uncertainty surrounding monetary policy and global economic trends.
Mt. Gox’s Turbulent Past: A Colossal Bitcoin Debt
Founded in 2010, Mt. Gox was once the leading exchange, handling over 70% of global Bitcoin transactions. However, in 2014, a disastrous security breach resulted in the loss of 740,000 bitcoins, an amount that would be worth over $15 billion today. This incident, one of the largest hacks in cryptocurrency history, led to the downfall of Mt. Gox, leaving thousands of users unable to access their funds.
Since then, a repayment plan has gradually been implemented, closely followed by creditors and market observers. Initially scheduled for 2024, the deadline for this repayment has been extended by one year, offering a new deadline in October 2025.
Investors Ready to Sell: Selling Pressure on the Market
This repayment plan, which involves BTC reimbursements, raises concerns among traders about potential selling pressure. Mt. Gox creditors acquired their bitcoins before 2013 at significantly lower price levels than today. These creditors, suddenly in possession of massively valued assets, may be tempted to sell some to realize profits, adding downward pressure on Bitcoin. This prospect is causing market participants to exercise caution regarding future Mt. Gox transactions, each of which could significantly impact the price of BTC.
