The cryptocurrency market continues to decline significantly, with its total market value dropping to $2.44 trillion on Tuesday, the lowest level since early November.

An important factor exacerbating investor concerns is the recent outflow of Bitcoin from the Mt. Gox exchange, which collapsed over a decade ago.

The platform transferred 11,833 BTC, valued at approximately $932 million, raising new uncertainties about its potential impact on market stability.

This development also triggered over $937 million in liquidations within 24 hours, exacerbating volatility in the digital asset market.

Mt. Gox transfers Bitcoin reserves

Mt. Gox has once again transferred a large amount of Bitcoin, moving 11,834 BTC, worth approximately $910 million.

Of these, 11,502 BTC (worth approximately $885 million) were sent to a new wallet, while 332 BTC ($25.5 million) were transferred to a 'hot' wallet for trading and fund management.



Just five days ago, the platform sent 166.5 Bitcoin to digital asset custodian BitGo, indicating that the platform is continuing to issue repayments to creditors who lost funds during the exchange's collapse.

The transfer on Monday came from the Mt. Gox wallet '1Mo1n', which received Bitcoin worth $1.07 billion from another exchange last week.

However, at the time, blockchain analysis platform Arkham Intelligence did not identify '1Mo1n' as a Mt. Gox wallet, fueling speculation about the purpose of the transactions.

The latest transfer confirms that the exchange is moving forward with its long-awaited creditor repayment process.

Concerns over Bitcoin supply intensify

Such a large influx of Bitcoin into the market heightens worries about potential price volatility.

The main concern is that creditors who have waited years to recover their funds may sell their Bitcoin upon receipt.

The sudden influx of Bitcoin into circulation could lead to a price drop, further exacerbating the current market slump.

Some repayments have already been processed through exchanges like Kraken and Bitstamp, but the complete distribution remains a lengthy process.

The official repayment deadline has been extended to October 31, 2025, meaning Bitcoin in the Mt. Gox wallet may continue to flow in the coming months.

Currently, the exchange wallet still holds Bitcoin valued at approximately $2.8 billion, a figure that could significantly impact market dynamics based on creditor actions.

Surge in cryptocurrency liquidations

The cryptocurrency market reacted strongly to the latest transfers from Mt. Gox, leading to massive liquidations across multiple exchanges.

Within 24 hours of Bitcoin's movement, positions worth over $937 million were liquidated, highlighting increasing uncertainty among investors.

Bitcoin has been under pressure from macroeconomic concerns, and due to traders expecting creditor repayment to exacerbate volatility, Bitcoin has faced additional selling pressure.

The broad impact of Mt. Gox's ongoing repayments remains uncertain. If creditors choose to hold onto the Bitcoin they recover, the market impact may be minimal.

However, if there is a massive sell-off, Bitcoin's price may face further downward pressure. Analysts are closely monitoring further activity from the Mt. Gox wallet as the repayment process continues.