Mt. Gox Transfers 1200 Bitcoins: Is a Sell-Off Coming?

The crypto community is on edge following Mt. Gox’s significant Bitcoin (BTC) transfer. According to data from Arkham Intelligence, the defunct exchange has moved Bitcoin worth $1 billion. 

The transaction has ignited speculation about potential selling pressure that could destabilize Bitcoin’s price amid already volatile market conditions.

Mt. Gox Transfers 12,000 Bitcoin

Arkham’s blockchain explorer shows that Mt. Gox transferred 12,000 BTC.

“Mt. Gox moving $1billion BTC,” Arkham alerted users on X.

Mt. Gox sent 11,833.6 BTC, worth approximately $1 billion, from its wallet (1PuQB) to a new address (1Mo1n). Additionally, it transferred 166.5 BTC, worth $15.1 million, to its cold wallet (1Jbez). No further movement occurred after these transactions.

This marks the first significant Bitcoin movement from Mt. Gox-linked wallets in a month. It came after a smaller shuffle of just 4 BTC between cold wallets in February.

Mt. Gox, once the world’s largest Bitcoin exchange, collapsed in 2014 after a massive hack. The security breach resulted in the loss of approximately 850,000 BTC. The exchange filed for bankruptcy, leaving creditors in limbo for years. 

However, Mt. Gox began reimbursing creditors last year. According to Arkham data, Mt. Gox-linked entities now hold 36,080 BTC, valued at around $3.2 billion.

Meanwhile, the transfer has sparked widespread concern on social media. Users are speculating that these movements could trigger a sell-off.

“Looks like they’re about to dump,” one user wrote on X.

However, Fefe Demeny, the host of Crypto Banter, alleged that the US government holds the transferred Bitcoin from Mt. Gox’s wallets, as it had previously seized these assets.

He speculated that this could be a strategic move ahead of the upcoming White House Crypto Summit. This summit, the first of its kind, is scheduled for March 7. 

Key discussion points are expected to include regulatory clarity for digital assets, the creation of a US crypto reserve that includes Bitcoin along with other digital assets, and potential reforms to crypto tax policies.

According to Demeny, Trump could use the summit to outline a plan that promises never to sell the seized BTC while committing to creating a Strategic Bitcoin Reserve.

Demeny believes this initiative would stir excitement within the crypto community and help boost market sentiment. The government could then leverage the already seized Bitcoin for the reserve without the need for any additional purchases. 

“If this turns out to be true I believe we will see a massive dump short term,” he wrote.

Meanwhile, Bitcoin has been grappling with market volatility, driven by factors such as new US trade tariffs and broader economic uncertainty. In fact, last week, the Crypto Fear and Greed Index reached its lowest level since 2022. 

However, Bitcoin (BTC) experienced a notable surge on March 5, rising above $90,000. This was driven by speculation that it may receive special treatment in Trump’s proposed US crypto reserve plan.

This upward movement follows a brief dip below $80,000 just five days ago. As of the latest update, Bitcoin was trading at $91,368, reflecting a 3.0% gain in the past 24 hours. Whether these gains will lead to a sustained bullish rally or if the market will once again take a nosedive remains uncertain.