Mt. Gox’s $2.9B Bitcoin Transfer Spooks Traders: Big Dip Incoming?

May 28, 2024 1:03 AM | 2 min read

Bankrupt cryptocurrency exchange Mt.Gox transferred billions of dollars’ worth of Bitcoin (CRYPTO: BTC) from its cold wallet to an unknown wallet, heightening anxiety levels of market participants.

What Happened: On-chain tracking platform Spot On Chain spotted a transfer of 42,909 Bitcoins, worth $2.93 billion at prevailing prices, to a wallet late Monday night. Conclusive information about the recipient wallet remains unknown at the time of writing.

Before these aforementioned transfers, addresses tagged with Mt.Gox had possession of 137,892 Bitcoins, worth $9.42 billion.

The development elicited mixed reactions from the public, with many X users coming up with their hypotheses and projections about the potential influence on Bitcoin’s price.

An X user, SuperCycle, while responding to the news, noted, “Not the dip you wanted but the dip you deserve. Scoop it.”

Another trader Maga Ventures feared a crash in price, as he said, “Oh no, MtGox dumped us.”

Why It Matters: Once at the peak of its powers, Mt. Gox’s empire came crashing down in 2014 as it filed for bankrupty protection following a massive hack that resulted in loss of 850,000 Bitcoin. For nearly 10 years, the exchange’s creditors have been seeking a resolution.

In September last year, the defunct exchange pushed back the repayment deadlines by a year, causing Bitcoin to briefly surge.

Price Action: At the time of writing, BTC was trading 1.66% lower at $67,666.69, according to data from Benzinga Pro.

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