Bitcoin slumps as Mt. Gox moves $9 billion in $BTC

Bitcoin slumps as Mt. Gox moves $9 billion in $BTC

Massive amounts of bitcoin are being moved out of Mt. Gox wallets in anticipation of disbursement to creditors. All bitcoin owed is set to be returned by the end of October of this year. The Bitcoin price has slipped under $68,000.

$9.2 billion in $BTC moves to one wallet

The crypto market caught a dose of the jitters once again as news broke of huge $BTC movements out of Mt. Gox wallets. According to the Arkham Intelligence platform, the transactions started happening in the early hours of Tuesday BST, and as of 9.00am, around 136,000 BTC had been moved to a wallet address beginning 1JbezDV. The value of the BTC amounts to approximately $9.2 billion at today’s prices.

The price of $BTC did not react favourably to the news. Down 2.35% so far on Tuesday – the price of $BTC lost $2,850 (4%) from the high of $70,600 it had achieved in Monday’s rally.

Can the market absorb the selling?

The question now is how much of this $BTC will be sold into the market? Given the huge gains that investors will make from the difference in price when Mt. Gox was hacked, to today’s hugely inflated price, it might be imagined that a good part of the $BTC could indeed be sold.

Going into the latter part of this year, it will be interesting to see whether the inflows into the Spot Bitcoin ETFs or positive market sentiment as a whole, will be substantial enough to absorb the selling that is bound to come from Mt. Gox creditors.

$BTC rejected once again

Source: Coingecko/TradingView

It seems that bitcoin just cannot rise out of the downward sloping channel it has been in since early March. Each time a rally gets up above $70,000, it fizzles out and is rejected. Of course, this is the behaviour of price within a bull flag, so perhaps this is all to be expected.

The $BTC price does have support around the $67,000 level, and also at $65,000, so a bounce might be expected to take place from one of these. If these supports fail to hold, a visit back to the low $60,000 area is on the cards. This would also tie in with the bottom of the bull flag.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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