Key Insights
- •Mt. Gox transferred 185.2 BTC worth $16.8 million to crypto exchange Kraken.
- •This follows a massive 10,423 BTC worth $950 million transfer earlier today.
- •Bitcoin price remains under selling pressure.
Mt. Gox Transfers Bitcoin to Kraken
Mt. Gox recently moved 185.2 BTC to the crypto exchange Kraken on Tuesday. This action occurred shortly after a significant transfer of 10,423 BTC earlier in the day.
Onchain Lens reported on November 18 that the beleaguered crypto exchange Mt. Gox deposited 185.2 BTC to the Kraken crypto exchange, with the transfer valued at $16.8 million.
A few hours prior to this, Mt. Gox moved over 10,423 BTC, equivalent to $954 million, to a new wallet. Spot On Chain noted that this wallet had been inactive for eight months.
On-chain experts suggested that the earlier, larger transfer might have been to Mt. Gox's own cold wallet. It is anticipated that these Bitcoin holdings will likely be distributed to exchanges in smaller, subsequent batches.
These movements of Bitcoin by Mt. Gox have ignited speculation about a potential further decline in the price of Bitcoin. This concern stems from apprehension within the crypto market, as the Fear & Greed Index dipped further into the extreme fear zone, reaching 11 on Tuesday.
Mt. Gox Delayed Payments for Another Year
The Japanese exchange Mt. Gox recently postponed creditor repayments by another year. This decision was initially viewed as a positive development, as many feared that creditors would rush to sell their Bitcoin, consequently driving down its price.
As previously reported, the trustee still held 34,689 BTC. Creditors are now expected to wait until October 2026 to receive their compensation, which has eased some market jitters.
However, the latest Bitcoin transfer to Kraken and the activation of a new wallet have reintroduced concerns about a potential further drop in Bitcoin's price. The current supply dynamics for Bitcoin remain unchanged.
Some market participants believe that as more time passes, a greater number of creditors will opt to hold onto their Bitcoin. This scenario would significantly reduce the risk of a coordinated sell-off occurring when repayments are eventually made.
Will Bitcoin Price Fall?
Despite a buy-the-dip sentiment among some whales and investors, the price of Bitcoin continues to face selling pressure. Mt. Gox's transfer of substantial Bitcoin amounts has triggered panic within the cryptocurrency community.
Crypto analyst Ali Martinez has observed that historically, each death cross formation over the past year has marked a local bottom for Bitcoin.
However, it is important to note that a death cross formation in 2022 preceded a significant bear market, raising concerns among traders.
The price of BTC experienced a rebound after falling below the $90,000 level. At the time of writing, the price was trading down 4% at $91,403 over the preceding 24 hours.
The 24-hour low and high prices recorded were $89,300 and $95,841, respectively. Furthermore, trading volume has increased by 53% in the last 24 hours, indicating heightened interest from traders.
CoinGlass data revealed mixed sentiment in the derivatives market. As of the latest update, the total Bitcoin futures open interest had decreased by 0.62% over the past 24 hours. However, it saw a jump of 1.20% to $66.70 billion in the last 4 hours.