Just as the price of bitcoin dipped below €80,000, an unusual event added to the market’s unease. On November 17, the bankrupt crypto exchange Mt. Gox moved approximately 10,600 bitcoin, worth around €1 billion. A portion of the coins were transferred, with another part being moved on to another storage address belonging to Mt. Gox.
This alone was enough to put the crypto world on edge. The fear stems from Mt. Gox’s remaining holdings: if these coins were to hit exchanges in large numbers, it could quickly lead to significant selling pressure.
Is There Reason to Panic? #
However, analysts say this doesn’t necessarily mean a dump of thousands of coins is imminent. A key point is that none of the moved bitcoins were transferred to a (visible) address where they could be sold. Furthermore, the repayment deadline for Mt. Gox creditors was extended by a year to October 31, 2026. This suggests the payout process is primarily administrative.
With approximately 34,500 bitcoin still held by Mt. Gox, the remaining supply is substantial. Yet, it’s not so large that the market would necessarily collapse under its weight. The move could also purely be an internal digital transfer within Mt. Gox, with no direct sale intended.
Crypto Market Reacted Less Heavily Than Expected #
The market’s reaction was less severe than some traders had anticipated. This is largely because investors are now aware that Mt. Gox frequently moves coins internally without it leading to a sale. In the past, such transfers sometimes preceded payouts, but this time, all signals of an impending sale were absent. As a result, panic remained limited, and the price recovered relatively quickly from the initial shock.
Another factor is that Mt. Gox operates under court supervision. Payouts are predetermined through paperwork, verifications, and agreements with exchanges, a process in which the current market has no say. Because of this, analysts expect the remaining 34,500 bitcoin to be paid out gradually over months or even years. For the market, this means the risk is spread out over time, rather than one major blow to the price.
What This Means for Bitcoin Investors #
For investors, the most important thing is to watch where the coins ultimately end up. Only when bitcoin moves from Mt. Gox wallets to known exchange addresses is the likelihood of a sale greater. As long as that doesn’t happen, the movements are mainly internal shifts that have little impact on the market’s available supply.