Crypto market plunges after Mt. Gox transfers over $9 billion in BTC

The transfer of several billion dollars in bitcoins from the former cryptocurrency exchange platform Mt. Gox, to anonymous addresses has sent crypto markets into a panic, causing prices to plummet across the board.

Mysterious bitcoin transfer from Mt. Gox sends market plunging

On May 28, approximately 107,547 BTC, or more than $9 billionhave been transferred from the cold portfolios from the now defunct Mt. Gox to various unknown addresses. This massive transfer took place in 13 separate transactions, ranging from $1.2 million to $2.2 billion in BTC.

Although Mt. Gox closed its doors in 2014 after a high-profile hack, creditors are still waiting for repayment of their assets.

In the wake of these suspicious transactions, the overall capitalization of the cryptocurrency market fell by around 3% to $2,465 billion. Bitcoin and ether, the two main virtual currencies, fell by 3% and 2.3% respectively.

This drop in prices reflects investors’ deep concern about the mysterious transfer. Many fear a potential massive “dumping” of bitcoins on the market, triggering selling pressure capable of shaking the entire cryptocurrency ecosystem.

Bitcoin ETF inflows stall

At the same time, investment flows into US-based spot Bitcoin ETFs have dried up in recent days. As of May 28, these funds had $13.68 billion in assets under management, a figure virtually unchanged for three days.

This stagnation in ETF flows reflects traders’ heightened caution in the face of short-term market uncertainties. Many are reluctant to make substantial new investments or reallocate their funds, contributing to the prevailing selling pressure.

The spectre of a massive liquidation of bitcoins held by Mt. Gox has darkened the outlook for the crypto market. Coupled with the slowdown in interest in Bitcoin ETFs, this event could mark a major turning point and necessitate a period of consolidation before an eventual rebound.