Mt. Gox Shifts $2.2B in Bitcoin : Potential for BTC Price to Dip Below $60K

The post Mt. Gox Shifts $2.2B in Bitcoin : Potential for BTC Price to Dip Below $60K appeared first on Coinpedia Fintech News

After repaying more than $6 billion worth of Bitcoin (BTC) to distressed creditors since June, Mt.Gox is preparing to make another fund distribution. According to on-chain data analysis provided by Arkham Intelligence, the defunct cryptocurrency exchange made the largest transfer of Bitcoins from its associated wallet earlier today.

Mt.Gox sent 32.371K Bitcoins, worth more than $2.1 billion to an unmarked wallet for the first time, signaling potential upcoming repayments. The company’s restructuring trustee has been working to finalize the repayment ahead of the recently extended deadline of twelve months to October 31, 2025.

Furthermore, Mt.Gox transferred 296 Bitcoins, worth $20.13 million to OKX and B2C2 crypto exchanges earlier today. Previously, Mt.Gox used different cryptocurrency exchanges to finalize the repayments to eligible creditors.

https://twitter.com/spotonchain/status/1853615753137914110?s=46 Impact on Bitcoin Price Action

The notable movement of Mt.Gox Bitcoin holdings will have a palpable impact on the underlying price action ahead. Moreover, the distribution of Mt.Gox funds is viewed as a bearish impact as it largely dilutes the existing market supply.

The overall volatility for Bitcoin and the entire altcoin market is expected to remain high amid the 2024 U.S. elections. Already, more investors, as shown by the notable cash outflows from the US Spot BTC ETFs,  have opted to exit the market and shelter from the high volatility.

https://twitter.com/ali_charts/status/1853502915417424043?s=46

From a technical analysis standpoint, Bitcoin price is likely to rebound in the coming weeks, as observed in previous US elections. Furthermore, the daily Relative Strength Index (RSI) has rebounded from the support level above 50 percent. However, a sustained decline and close below the support level above $65k will lead to further crypto selloff in the near term, which could potentially send Bitcoin below $60k.