The cryptocurrency market witnessed a downturn on Tuesday, with its total market capitalization plummeting to $2.44 trillion—the lowest level since early November. Leading digital assets, including Bitcoin and Ethereum, experienced sharp declines, raising concerns about the stability of the current bullish cycle.
Bitcoin fell below $77,000 for the first time since November 2024, while Ethereum and other major cryptocurrencies reached multi-month lows. A key factor fueling investor anxiety is the recent movement of Bitcoin linked to Mt. Gox, the defunct exchange that collapsed over a decade ago.
The latest market turbulence was exacerbated by Mt. Gox’s transfer of 11,833 BTC, valued at approximately $932 million. This substantial movement has heightened uncertainty about potential price fluctuations and market stability.
Within 24 hours of the transfer, over $937 million in crypto positions were liquidated across multiple exchanges, reflecting the heightened volatility. Blockchain data reveals that Mt. Gox moved 11,834 BTC (worth roughly $910 million), with 11,502 BTC ($885 million) sent to a new wallet and 332 BTC ($25.5 million) transferred to a “warm” wallet for transactions and fund management.
This latest transfer follows a similar transaction five days prior, when 166.5 BTC was sent to BitGo, a digital asset custodian. These movements indicate that Mt. Gox is actively processing repayments to creditors who lost funds during its collapse.
Monday’s transfer originated from the wallet “1Mo1n,” which previously received $1.07 billion in Bitcoin from another exchange. Initially unrecognized as a Mt. Gox wallet by blockchain analytics firm Arkham Intelligence, the wallet’s recent activity confirms the platform’s ongoing repayment process.
The release of such a large volume of Bitcoin has sparked fears of further price drops, as many creditors—who have waited years for compensation—may liquidate their holdings upon receipt. A sudden influx of Bitcoin into circulation could exert additional downward pressure on prices, deepening the current market decline.
Some repayments have already been processed through platforms like Kraken and Bitstamp. However, the full distribution remains a prolonged process, with an official repayment deadline set for October 31, 2025. Additional Bitcoin movements from Mt. Gox wallets are expected in the coming months, keeping investors on edge.
As of now, Mt. Gox still holds approximately $2.8 billion worth of Bitcoin. The extent of its impact on the market will depend on creditor decisions—whether they choose to sell their recovered assets or hold onto them.
While the broader implications remain uncertain, the crypto market’s immediate response has been one of heightened volatility. If large-scale selling ensues, further downward pressure on Bitcoin and other digital assets is likely. However, if creditors opt to retain their holdings, the long-term market impact may be more subdued.
The cryptocurrency market witnessed a significant downturn on Tuesday, with its total market capitalization plummeting to $2.44 trillion—the lowest level since early November. Leading digital assets, including Bitcoin (BTC) and Ethereum (ETH), experienced sharp declines, raising concerns about the stability of the current bullish cycle.
Bitcoin fell below $77,000 for the first time since November 2024, while Ethereum and other major cryptocurrencies reached multi-month lows. A key factor fueling investor anxiety is the recent movement of Bitcoin linked to Mt. Gox, the defunct exchange that collapsed over a decade ago.
The latest market turbulence was exacerbated by Mt. Gox’s transfer of 11,833 BTC, valued at approximately $932 million. This substantial movement has heightened uncertainty about potential price fluctuations and market stability.
Within 24 hours of the transfer, over $937 million in crypto positions were liquidated across multiple exchanges, reflecting the heightened volatility. Blockchain data reveals that Mt. Gox moved 11,834 BTC (worth roughly $910 million), with 11,502 BTC ($885 million) sent to a new wallet and 332 BTC ($25.5 million) transferred to a “warm” wallet for transactions and fund management.
This latest transfer follows a similar transaction five days prior, when 166.5 BTC was sent to BitGo, a digital asset custodian. These movements indicate that Mt. Gox is actively processing repayments to creditors who lost funds during its collapse.
Monday’s transfer originated from the wallet “1Mo1n,” which previously received $1.07 billion in Bitcoin from another exchange. Initially unrecognized as a Mt. Gox wallet by blockchain analytics firm Arkham Intelligence, the wallet’s recent activity confirms the platform’s ongoing repayment process.
The release of such a large volume of Bitcoin has sparked fears of further price drops, as many creditors—who have waited years for compensation—may liquidate their holdings upon receipt. A sudden influx of Bitcoin into circulation could exert additional downward pressure on prices, deepening the current market decline.
Some repayments have already been processed through platforms like Kraken and Bitstamp. However, the full distribution remains a prolonged process, with an official repayment deadline set for October 31, 2025. Additional Bitcoin movements from Mt. Gox wallets are expected in the coming months, keeping investors on edge.
As of now, Mt. Gox still holds approximately $2.8 billion worth of Bitcoin. The extent of its impact on the market will depend on creditor decisions—whether they choose to sell their recovered assets or hold onto them.
