Mt. Gox Moves 2500 BTC, Raising Concerns About Possible Bitcoin Price Drop

Highlights:

• Mt. Gox moved 2,500 BTC to an unknown address, worth about $222 million.
• The crypto exchange still holds around $3 billion worth of BTC.
• Mt. Gox’s transfer could trigger selling pressure, but some remain optimistic about Bitcoin.

According to a recent report by Arkham Intelligence, bankrupt crypto exchange Mt. Gox transferred 2,500 Bitcoin (BTC), worth around $222 million, to an unidentified address starting with “1PQZw…DDJtK” today. The move comes amid Bitcoin’s surge to $89,000, per CoinGecko data. The recent transfer has sparked investor discussions about its potential impact on the coin’s current rally.

MT. GOX DUMP COULD SLOW BITCOIN'S MOMENTUM

Bitcoin's recent pump might hit a bump, thanks to Mt. Gox moving over 2,500 BTC today, valued at around $228 million.

While BTC is still in the green, the whole situation’s got investors talking—could this trigger a bigger selloff?… pic.twitter.com/oUdBfznlVo

— IBC Group Official (@ibcgroupio) November 12, 2024

At the time of reporting, the defunct crypto exchange still holds approximately 44,378 BTC in its wallets, which is valued at around $3 billion. The latest transfer follows a bigger one on November 5, when Mt. Gox sent 32,371 BTC worth $2.2 billion to an unknown address.

The #MtGox wallet has transferred 32,371 $BTC($2.19B) to 3 new wallets again in the past 2 hours.https://t.co/f2q66eQNuk pic.twitter.com/8OPtun9oDZ

— Lookonchain (@lookonchain) November 5, 2024

However, if a similar selloff persists, it could significantly affect crypto’s performance in the coming days. Notably, Mt. Gox’s distribution of funds to creditors has previously impacted investor sentiment. It is uncertain if these recent transfers are connected to the exchange’s efforts to pay its creditors.

Impact of Mt. Gox Transfers on Bitcoin Price

A wave of traders is concerned that this move could trigger selling pressure if creditors choose to liquidate their holdings. On the other hand, some experts are still confident. With crypto, especially Bitcoin, becoming more popular after Donald Trump’s win, many believe creditors will keep their holdings as the market rises. It is uncertain if these recent transfers are connected to the exchange’s efforts to pay its creditors.

As of writing, BTC was up nearly 5.48%, reaching a new all-time high of $89,312.06. Its trading volume surged 98% to $156.65 billion, while BTC Futures Open Interest rose 11%, reflecting strong market confidence in the crypto.

While BTC has shown strong growth, expert Alistair Milne predicts a short-term 20-25% correction. If this happens, Bitcoin’s price could fall to around $60,000, especially if more BTC from Mt. Gox enters the market. However, Milne expects the dip to be temporary, with Bitcoin likely rebounding to $100,000.

Mt. Gox’s Ongoing Compensation Process

This transfer comes as the exchange has not yet fully settled compensation claims with its former users. The timeline for full payouts has been extended. Initially set to conclude by October 31, 2024, the deadline is now pushed to October 31, 2025, due to ongoing verification and processing requirements for claimants.

INTEL: Mt. Gox has extended the compensation payment period by one year, now until October 31, 2025

— Solid Intel 📡 (@solidintel_x) October 10, 2024

Mt. Gox, once the world’s largest Bitcoin exchange, collapsed in 2014 after losing around 850,000 Bitcoin in a security breach. Since 2018, the rehabilitation process has faced numerous legal and logistical challenges, which have delayed efforts to compensate those affected. 

Some creditors have received fiat currency payments into their bank accounts as part of the reimbursement process. However, many users are still awaiting full compensation in Bitcoin Cash or Bitcoin.

Bitcoin has historically reacted quickly to Mt. Gox’s Bitcoin transfers. However, recent activities seem to have had little impact on the Bitcoin market. There are concerns that when full compensation is distributed, some creditors may sell their Bitcoin holdings, potentially impacting market prices.