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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Nov 05, 2024 04:32 UTC
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Is Mt. Gox Making Bitcoin Payments Again? $2.2B Transfer Triggers Market Jitters
Mt.Gox has transferred a significant amount of Bitcoin to an unmarked wallet, signaling potential upcoming repayments to creditors.
The transfer of these funds could have a bearish impact on the crypto market, as it increases the supply of Bitcoin.
Bitcoin's price is expected to be volatile in the coming weeks due to the US elections and potential market reactions to Mt.Gox's actions.
After paying out over $6 billion in Bitcoin (BTC) to creditors since June, the defunct cryptocurrency exchange Mt. Gox is preparing for another large fund distribution. According to on-chain data from Arkham Intelligence, Mt. Gox’s wallet recently made its biggest-ever Bitcoin transfer, suggesting that additional repayments may be on the way.
The creditors have waited long enough. What is coming next?
What’s the Buzz About?
Mt. Gox moved 32,371 BTC—worth more than $2.1 billion—to an unmarked wallet, marking the first time it has sent such a substantial amount to this address. This move is likely in preparation for the next repayment phase, as the company’s restructuring trustee works toward meeting the extended repayment deadline of October 31, 2025.
In addition to this primary transfer, Mt. Gox sent 296 BTC (around $20.13 million) to OKX and B2C2 exchanges. Previously, Mt. Gox used various crypto exchanges to help process repayments to eligible creditors, building anticipation around the upcoming final stages of its long-awaited repayment plan.
Impact on Bitcoin Price Action
This significant release of Mt. Gox’s Bitcoin holdings is likely to impact BTC’s price by increasing available supply. Many analysts see this added supply as a bearish signal, potentially weighing down Bitcoin’s price as it enters the market.
The overall volatility for Bitcoin and the entire altcoin market is expected to remain high amid the 2024 U.S. elections. Already, more investors, as shown by the notable cash outflows from the US Spot BTC ETFs, have opted to exit the market and shelter from the high volatility.
Key Levels for Bitcoin Price
From a technical perspective, Bitcoin’s price could rebound in the coming weeks, following a pattern often seen around U.S. election cycles. The daily Relative Strength Index (RSI) recently bounced off its support level above 50, showing some resilience. However, if Bitcoin drops below its critical support around $65,000, a deeper selloff could unfold, potentially pushing the price below $60K.
As Mt. Gox progresses with its repayments, the market will closely watch how Bitcoin absorbs this additional supply amid rising volatility expected over the next few weeks.
A chapter in crypto history is about to turn. We’re excited – hope you are too!
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