The cryptocurrency market continues to face sharp declines, with its total market cap dropping to $2.44 trillion on Tuesday, the lowest since early November.
Bitcoin (BTC) has fallen below $77,000 for the first time since November 2024, while other leading digital assets such as Ethereum (ETH) have also tanked to multi-month lows, testing the bullish narrative of the cycle.
Once again, a sizable amount of Mt. Gox’s Bitcoin holdings have been transferred, with 11,834 BTC valued at almost $910 million. Of this, 332 BTC ($25.5 million) was moved to a “warm” wallet for transactions and fund administration, while 11,502 BTC (worth around $885 million) was transmitted to a new wallet.
Continuous repayment distribution process
This action suggests a continuing process of paying back creditors who lost money following the collapse of the exchange, as it occurs only five days after the platform sent 166.5 BTC to BitGo, a custodian of digital assets.
The Mt. Gox wallet “1Mo1n,” which had received $1.07 billion in Bitcoin from another exchange last week, was the source of Monday’s transfer.
Arkham Intelligence, a blockchain analytics tool at the time, did not identify “1Mo1n” as a Mt. Gox wallet, which increased conjecture on the transactions’ intent. The exchange’s long-awaited creditor repayments are now being made, as confirmed by the most recent transfers.
Concerns about possible price swings have increased as a result of the massive amount of Bitcoin that has been released into the market. The main concern is that when creditors receive their Bitcoin holdings, they may decide to sell them after waiting years to get their money back. Prices could drop if there is an unexpected surge in the supply of Bitcoin, which would worsen the present market decline.
What you should know
Some repayments have already been processed through exchanges like Kraken and Bitstamp, but the full distribution remains a drawn-out process.
The official repayment deadline has been extended to October 31, 2025, meaning further Bitcoin movements from Mt. Gox wallets could continue in the coming months.
At present, the exchange still holds approximately $2.8 billion worth of Bitcoin in its wallets, a figure that could significantly influence market dynamics depending on creditor actions.
The crypto market reacted sharply to the latest Mt. Gox transfers, leading to widespread liquidations across multiple exchanges. Within 24 hours of the Bitcoin movements, over $937 million worth of positions were liquidated, highlighting the heightened uncertainty among investors. Bitcoin, already under pressure from macroeconomic concerns, saw additional selling pressure as traders anticipated increased volatility from the expected creditor repayments.
The broader implications of Mt. Gox’s ongoing repayments remain uncertain. If creditors decide to hold their recovered Bitcoin, market impact may be minimal.
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