Mt.Gox Transfers $2.2B Bitcoin, BTC Drops Below $68K Ahead of U.S. Election

Bitcoin prices recently fell below $68,000, largely due to a massive transfer of assets from Mt.Gox. The transfer involved over 32,000 BTC, equivalent to around $2.2 billion at current prices, moved to specific wallet addresses.

Mt.Gox Moved Bitcoin In Two wallets — Repayment Soon?

Mt.Gox transferred these Bitcoins as part of its ongoing repayment plan. These funds were sent to two primary addresses: about 30,400 BTC went to “1FG2C…Rveoy,” while another 2,000 BTC was sent to “15gNR…a8Aok,” after first being routed through a Mt. Gox cold wallet.

This move is a preparatory step. Transferring such large sums typically indicates that assets may soon be sent to exchanges for sale. If Mt. Gox proceeds with these sales, it could add more selling pressure in the market, potentially affecting Bitcoin’s price.

Mt.Gox’s history is one of the most notable events in crypto. The exchange, once handling more than 70% of Bitcoin transactions globally, was hacked in 2014. The hack resulted in the loss of 740,000 BTC, which would be worth over $15 billion today. This hack led to Mt.Gox’s collapse, leaving thousands of investors unable to access their assets. Since then, there has been a long legal process to recover and redistribute these funds to creditors.

Now, Mt.Gox is implementing a repayment plan to return assets to affected investors. Initially, this repayment deadline was set for October 2024, but it has since been extended to October 31, 2025, to give more time for the complex process.

Will BTC Go Down Further?

The recent transfer spurred Bitcoin’s price drop by about 2% in a single day, with BTC slipping below $68,000. However, as of this writing, the Bitcoin price recovered and now hovering around $68,800 with a slight increase of 0.3%.

This news comes amid a tense period for the market, with the U.S. presidential election on the head. Analysts are predicting increased volatility, with potential price swings reaching up to $8,000 in either direction.

Historically, sudden moves by entities with large holdings, like Mt.Gox, can increase volatility. This is because the sale of such a massive amount of Bitcoin could flood the market, possibly driving prices down further. This risk is heightened by the fact that investors receiving repayments are likely to sell some of their holdings, as they bought Bitcoin at much lower prices over a decade ago.