- Mt. Gox’s Bitcoin transfer sparks market fears, leading to panic selling.
- Trump’s recession fears and tariff comments add pressure on crypto markets.
- Bitcoin diverges from altcoins as a hedge against economic instability.
The cryptocurrency market took a sharp downturn this week. The move appears linked partly to large Bitcoin transfers emerging from wallets associated with the defunct Mt. Gox exchange, combined with rising concerns about a possible US recession.
These factors reportedly contributed to increased selling pressure among some traders and investors.
Why Are Mt. Gox Bitcoin Transfers Spooking the Market?
Blockchain analytics firm Arkham Intelligence flagged significant Bitcoin movements related to Mt. Gox holdings on March 25.
Tracked on-chain transactions showed approximately 893 BTC (valued around $78 million at the time) moved to a known cold wallet associated with the estate. Additionally, a much larger sum of about 10,608 BTC (worth roughly $929 million) was sent internally to a Mt. Gox ‘change wallet’.
This marked the third such large transfer within a month from wallets tied to the long-collapsed exchange, further raising concerns about the potential market impact. Mt. Gox is slowly progressing through its years-long process of settling debts with creditors, and investors worry that a large influx of these formerly locked coins eventually hitting the open market could trigger significant sell-offs.
Related: Mt. Gox Moves $228M in BTC, Will This Impact Bitcoin’s Price?
Recession Fears & Trump Policy Talk Add Market Pressure
Beyond the Mt. Gox supply overhang concerns, broader economic uncertainty has added pressure to risk assets, including crypto. Recent public comments from U.S. President Donald Trump regarding the possibility of an economic recession reportedly increased investor anxiety across markets.
The administration’s discussion of new tariffs on imports from key trading partners like Canada, Mexico, and China also weighed on sentiment, primarily due to fears of heightened global economic instability and potential inflationary effects.
While Trump has also expressed support for digital assets historically – suggesting regulatory measures to support crypto growth and proposing a strategic Bitcoin reserve – his concurrent tariff talk creates conflicting signals for macro-sensitive markets.
Bitcoin vs. Nasdaq: Correlation Persists, But Divergence Noted
Adding further context is the ongoing, though fluctuating, correlation between Bitcoin and traditional risk assets like tech stocks. According to financial strategist Inky Cho, Bitcoin’s price correlation with the Nasdaq composite index currently stands near 40%.
However, Cho and other market observers note different behaviors potentially emerging between Bitcoin and the broader altcoin market.
Related: Bitcoin Parks Near $87K, Shrugs Off Trump’s US Tariff Speed Bump
While Bitcoin is increasingly viewed as a hedge against economic instability and tariffs, altcoins remain closely tied to the performance of tech stocks in the Nasdaq.
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