BTC Tumbles Below $68K as Mt.Gox Sends $2.2B Bitcoin to Two New Wallets
The cryptocurrency market experienced a dip as Mt.Gox, the defunct crypto exchange, moved a staggering 32,000 BTC (equivalent to $2.2 billion) to new wallet addresses. This significant transfer is part of Mt.Gox’s ongoing repayment plan, which has now been extended until October 31, 2025. These large-scale bitcoin transfers have a direct impact on market volatility.
Bitcoin (BTC) prices declined by 2% in the past 24 hours, falling below the $68,000 mark. The timing of this transfer, coupled with the approaching U.S. elections, has led traders to anticipate heightened market volatility, with potential price swings of up to $8,000.
Detailed data from Arkham reveals that Mt.Gox moved 30,400 BTC to the address “1FG2C…Rveoy” and another 2,000 BTC to “15gNR…a8Aok” after initially transferring the funds to a cold wallet. Such movements are often seen as a means of consolidating assets before selling them on cryptocurrency exchanges.
Market analysts believe that Mt.Gox’s repayments add selling pressure to the Bitcoin market. Early investors who acquired their assets before 2013 will receive their repayments at a much higher value than their initial purchase price, potentially prompting them to sell a portion of their holdings.
Mt.Gox was once the leading crypto exchange worldwide, overseeing over 70% of all bitcoin transactions during its early years. However, in 2014, the platform suffered a devastating hack, resulting in the loss of approximately 740,000 bitcoin, currently valued at over $15 billion. This breach constituted the largest attack on Mt.Gox during the years 2010-2013.
Trustees managing Mt.Gox’s bankruptcy proceedings have been formulating a repayment plan for several years. Initially, a Tokyo court provided a deadline of October 2024 for the completion of repayments. However, in October of the previous year, the deadline was extended by another year, now set at October 31, 2025.