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 billion, have 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.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
