Last Monday’s frenzy over the Ethereum ETF had a profound impact on the overall market, particularly on Bitcoin. However, the Bitcoin price has now stabilized around $70,000, providing some relief to investors. In fact, at one point, the price even surged to $72,000. Unfortunately, a recent news report has disrupted the market once again.
Just minutes ago, it was revealed that a cold wallet linked to the Mt. Gox exchange, which has played a significant role in the cryptocurrency landscape, transferred 12,400 Bitcoins to an unknown address. This transfer was carried out in five separate transactions, with the first four transactions involving 2,000 BTC each, and the final transaction consisting of 2,240 BTC.
Interestingly, the Mt. Gox address still holds a substantial amount of Bitcoin, currently standing at 137,892 BTC. However, it is worth noting that Mt. Gox plans to distribute its 142,000 BTC and 143,000 BCH assets to its creditors before October 31, 2024.
Although the reason behind this transfer remains unclear, it has had a negative impact on the Bitcoin price. Immediately after the news broke, the price plummeted within minutes. It dropped from around $69,400 to $68,400, and as of now, it continues to hover around $68,700.
Following this decline, Bitcoin’s market capitalization fell to $1.35 trillion, representing a decrease of less than 1%. However, the 24-hour trading volume saw an increase after this sudden drop. In fact, BTC’s 24-hour trading volume reached $27.2 billion, showing a significant 65% positive change.
This surge in trading volume can be interpreted in different ways. On one hand, it demonstrates the eagerness of investors to purchase Bitcoin. On the other hand, when combined with the price drop, it could also indicate a rise in short selling.
As always, it is important to note that the information presented in this article should not be considered as investment advice. Cryptocurrencies are highly volatile and carry substantial risks. Therefore, investors should conduct their own research and exercise caution when dealing with these assets.