Last Monday’s surge in popularity for Ethereum ETFs had a significant impact on the entire market, including Bitcoin. However, the Bitcoin price has since returned to the $70,000 level, giving investors a much-needed break. In fact, at one point, the price even reached $72,000. Unfortunately, a recent news report has caused some harm to the market.
Just minutes ago, it was revealed that a cold wallet belonging to the Mt. Gox exchange, which has been a central figure in the cryptocurrency world for some time now, transferred 12,400 Bitcoins to an unknown address. This transfer was executed through five different transactions, with the first four transactions involving 2,000 BTC each, and the final transaction transferring 2,240 BTC.
Currently, the Mt. Gox address still holds 137,892 BTC. However, it is known that Mt. Gox plans to distribute its 142,000 BTC and 143,000 BCH assets to its creditors before October 31, 2024.
The reason behind this recent transfer remains unclear, but it has had a negative impact on the Bitcoin price. As soon as the news broke, the price of Bitcoin plummeted within minutes. It dropped from its previous level of $69,400 to $68,400, and as of now, it continues to trade around $68,700.
Following this decline, Bitcoin’s market cap fell to $1.35 trillion, which reflects a decrease of less than 1%. However, the 24-hour trading volume has increased since the sudden drop. In fact, BTC’s 24-hour trading volume has reached $27.2 billion, showing a 65% positive change.
This increase in trading volume can be interpreted in different ways. On one hand, it could indicate that investors are eager to buy Bitcoin. On the other hand, when combined with the price drop, it could also suggest a trend of short selling.
Please note that the information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies, and should conduct their own research before making any investment decisions.
