Liquidations, Government Dumps, and Mt. Gox Transfers: How Much More?

• Mt. Gox transferred 1,544 BTC to an address belonging to crypto exchange Bitbank.
• Over $682.56 million was liquidated from the market in the past 24 hours.
• The German government sent 1,300 BTC to Coinbase, Bitstamp, and Kraken.

Bitcoin’s price is under pressure as a major options expiry coincides with large-scale Bitcoin movements from the defunct exchange Mt. Gox and the German government. This confluence of events has triggered a wave of bearish sentiment in the crypto market. 

In the past few hours, BTC selling activity has surged, leading to a massive decline in the altcoin sector as well.

Mt. Gox began distributing Bitcoin to its creditors in the past 24 hours. As per Arkham Intelligence data, the exchange’s wallet showed significant movement, with 47,229 BTC (worth $2.5 billion at current prices) transferred to a wallet at 8:27 a.m. UTC+8 on Friday. The same wallet then transferred the cryptocurrencies to two addresses, reported PeckShield. One address received 44,500 BTC worth around $2.55 billion, while the other received 2,700 BTC worth close to $154.8 million.

As noted by a crypto analyst on X, Mt. Gox transferred 1,544 BTC to an address belonging to crypto exchange Bitbank, signaling a potential sell-off. The large-scale movements in Mt. Gox wallets were one of the most feared events in the crypto space, which finally knocked on the investors’ doorsteps.

Mt. Gox confirmed that it would begin repaying its creditors starting early July and holds 142,000 BTC, 143,000 Bitcoin Cash (BCH), and 69 billion yen. As predicted by Galaxy Digital’s head of research, Alex Thorn, in a June 25 post on social media platform X, only 65,000 of the 141,000 total Bitcoin will actually hit the market, reducing the effect on the market.

However, despite Thorn’s optimistic prediction, it is clear that the market is hurting, with Bitcoin plummeting 7.3% in the past 24 hours, as per CoinMarketCap data. At the time of publication, BTC is trading at $54,544. The leading digital asset is down 11.45% in the past seven days and 23.15% in the past 30 days. 

Financial analyst Jacob King stated on X that the German government sell-off and Mt. Gox repayments could push Bitcoin into another “harsh bear market.” He added: 

“No Bitcoiner will say this out loud, but the majority of the $8.2 Billion in $BTC that is set to be distributed back to ex-clients are going to be sold off.”

The German government transferred 1,300 BTC to crypto exchanges Coinbase, Bitstamp, and Kraken, with a total value of $75.53 million and an average recharge price of $58,105. It also sent 1,700 BTC to address 139Po, “which may be transferred to institutional services or over-the-counter deposits,” said Wu Blockchain.As per Coinglass, $682.56 million was liquidated from the market in the past 24 hours, with two whales losing cETH worth $10.7 million and $2.25 million, respectively.