NEW BTC TRANSFERS FROM MT. GOX ON THE AGENDA OF THE MARKET
#Mt.Gox #elg #TradingAnalysis101
Mt. Gox has caused unease in the cryptocurrency market with its recent high-volume Bitcoin (BTC) transfers. It has been reported that approximately 11,834 BTC were transferred, with 11,502 BTC going to a new wallet and the remaining portion transferred to a hot wallet. This movement occurred after a transfer of BTC worth $1.07 billion at the beginning of March and a subsequent transaction of $15 million (CoinDesk, 2024). After the major hack attack in 2014 that led to its bankruptcy, Mt. Gox decided to make BTC and Bitcoin Cash (BCH) payments to creditors and has begun repayments that will last from July 2024 to October 2025 (Reuters, 2024).
The new transfers raise the risk of a massive sell-off if creditors decide to release their BTC holdings into the market collectively. On the other hand, institutional investors or OTC markets might absorb this supply, or creditors may opt for gradual payments. Bitcoin has decreased to the level of $76,624 due to the impact of the transfers; it has recovered to reach the $80,000 range. Ethereum is fluctuating around $1,900 after a 7.5% loss in value, while significant declines have also been seen in major altcoins like Solana and XRP.
As a result, this situation is leading to uncertainties in the crypto market. These developments require investors to adopt a cautious approach and closely monitor market dynamics. Experts emphasize that while short-term fluctuations are expected during this process, a long-term perspective must be maintained.
