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Bitcoin: Mt. Gox movements will not affect the price!

Thu 30 May 2024 ▪ 3 min of reading ▪ by Mikaia A.
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Recently, Mt. Gox transferred nearly $10 billion worth of bitcoins, causing panic among crypto enthusiasts. However, experts are tempering the situation: the funds remain in the wallets of the fallen exchange. And if these bitcoins were to be released, Bitcoin ETFs, always hungry, are ready to absorb them.

Tiroirs de MT Gox rempli de pièces de bitcoin

Mt. Gox: the dance of billions of bitcoins without free fall

In the crypto universe, where roller coasters are the norm, Mt. Gox recently added a new loop of fear. On May 28, the bankrupt crypto exchange transferred bitcoins worth $9.6 billion from its “cold wallet,” a move that briefly shook the markets. But before investors could rush to the panic button, CryptoQuant’s onchain analysts reassured everyone.

According to these keen observers of blockchain transactions, there is no need to panic. The billions in bitcoins were not dumped on the crypto market but simply transferred between different addresses controlled by the Mt. Gox Rehabilitation Trustee. In other words, creditors have not yet seen their repayments.

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For those not following, Mt. Gox, once the giant of bitcoin exchanges, collapsed in 2014, leaving thousands of users stranded. Since then, the saga of repayments has dragged on, with fund movements scrutinized by the crypto community.

The $9.6 billion worth of bitcoins were first moved to a new unique address, then distributed to three distinct addresses, each containing 47,300 BTC. But rest assured, these precious bitcoins remain under the control of Mt. Gox’s “Rehabilitation Trustee”.

In a statement released the same day, the administrator confirmed that no repayments had been made nor any assets sold. So, despite the initial excitement, there is no crash in sight for bitcoin.

Just another busy day in the tumultuous world of cryptocurrencies.

Optimists bet on the market’s resilience

Despite the fears, some see a bright future for cryptos. The market, they say, can absorb waves of selling without flinching. The enigmatic Killianz88, a seasoned crypto trader, trumpets on X:

The holders of these bitcoins, bought for less than $200, will sell at least 75% of their coins.”

However, he quickly tempers this prediction by highlighting that Bitcoin ETFs, seeking 4,000 coins each day, are ready to absorb these Mt. Gox bitcoins as soon as they enter circulation.

Crypto enthusiasts can therefore remain calm, the market is ready to digest these billions without indigestion.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.