Mt. Gox, the once-dominant cryptocurrency exchange that went bankrupt in 2014, has made another massive Bitcoin ($BTC) transfer. On 25 March, the exchange moved 11,501.4 $BTC, worth about $1 billion, across two wallets.
This is the second large-scale transaction of this kind in March, attracting the attention of traders and analysts who are monitoring how these movements could affect Bitcoin’s price.
According to blockchain analytics firm SpotOnChain, 10,608 $BTC (around $929.7 million) was transferred to a new wallet, while 893.4 $BTC (approximately $78.3 million) was sent to a warm wallet.
This follows another recent transfer by Mt. Gox when it moved 332 $BTC (worth $25.5 million) to the crypto exchange Bitstamp. Analysts speculate that the 893.4 $BTC in the warm wallet might also be moved soon, potentially affecting market trends.
Large transfers raise market concerns
Earlier in March, Mt. Gox transferred 12,000 $BTC when Bitcoin was trading at around $92,000. Since then, Bitcoin’s value has dropped by nearly 7% and is now hovering around $87,000.
Daily trading volume for Bitcoin has surged by 97%, reaching $33.37 billion, indicating heightened market activity following these large transfers.
The ongoing Bitcoin movements from Mt. Gox has raised concerns among traders. Since the exchange is still holding a large amount of Bitcoin, any sudden sale of these assets could impact the market.
Some analysts warn that if more of these funds are liquidated, Bitcoin could experience increased volatility, especially since it is currently trading near key price levels.
Others believe the market has already adjusted to these transactions, meaning any immediate effects might be limited.
Arkham Intelligence, a blockchain analytics firm, confirmed that Mt. Gox had transferred the 11,501 $BTC into two wallets. The firm identified that 10,608 $BTC was moved to a wallet known as the Mt. Gox change wallet (1DcoA), while 893 $BTC went into the exchange’s hot wallet (1Jbez).
This move comes after two earlier transactions this month. On 6 March, Mt. Gox transferred 12,000 $BTC worth $1 billion. A few days later, it moved 11,834 BTC, valued at $910 million at the time.
During the second transaction, 332 $BTC worth over $25 million was deposited into Bitstamp. This suggested that some of the Bitcoin might be sold or distributed soon.
SpotOnChain has now suggested that the latest 893 $BTC sent to the hot wallet could also be moved shortly.
Preparing for creditor repayments
Despite these large transactions, Mt. Gox still holds 35,583 $BTC, valued at over $3 billion. These recent transfers may be part of preparations to repay creditors who have been waiting for compensation since the exchange’s collapse over a decade ago.
The deadline for creditor repayments is set for October 2025. In October last year, the trustee overseeing Mt. Gox’s assets announced that the repayment deadline had been extended by a year to 31 October, 2025.
A notice from the trustee stated, “Many rehabilitation creditors still have not received their repayments because they have not completed the necessary procedures for receiving repayments.
Additionally, a considerable number of rehabilitation creditors have not received their repayments due to various reasons, such as issues arising during the repayments process”.
Despite these transfers, Bitcoin’s price has remained mostly stable. According to data available online, $BTC dropped only 0.19% in the past day. As of writing, it is trading at around $86,756.
While Bitcoin has seen recent losses, some analysts believe it could be poised for a rebound. Technical analysis suggests that Bitcoin may be close to breaking out of a downward trend. If this happens, Bitcoin’s price could climb toward $95,000.
Market reactions
The former CEO of BitMEX, Arthur Hayes, has a positive outlook on Bitcoin’s future. He predicts that Bitcoin is more likely to hit $110,000 than drop to $76,500.
“The price is more likely to hit $110k than $76.5k next. If we hit $110k, then it’s yachtzee time and we ain’t looking back until $250k”, Hayes wrote on X.
His optimism is based on the expectation that the US Federal Reserve will shift from quantitative tightening (QT) to quantitative easing (QE). This would increase liquidity, potentially benefiting Bitcoin.
Hayes also suggested that tariffs and inflationary pressures won’t have a lasting effect on the economy, meaning Bitcoin’s growth might not be hindered.
Mt. Gox’s recent transfer marks its third major Bitcoin movement in March alone. Arkham Intelligence reported that the Japanese exchange moved 893 $BTC (about $78 million) to its cold wallet and another 10,608 $BTC (worth around $929 million) to its change wallet.
This follows earlier movements of 12,000 $BTC worth more than $1 billion on 6 March, and another 11,833 $BTC on 11 March. On-chain data shows that Mt. Gox still controls around 35,000 $BTC, worth approximately $3.1 billion.
SpotOnChain data also revealed that in previous transfers this month, some of the Bitcoin ended up in the Bitstamp exchange. The analytics firm speculated that the 893.4 $BTC in the warm wallet could soon be moved as well.
The firm also pointed out that in a past transaction, Mt. Gox transferred $15 million worth of Bitcoin to BitGo, a custodian helping with creditor repayments.
Additionally, the exchange had sent 166.5 $BTC (around $15 million) to its cold wallet, while the rest was moved to an unidentified address.
The latest movements indicate that Mt. Gox is actively handling its Bitcoin holdings as creditor repayments approach.
Since the exchange still has a significant amount of Bitcoin, traders will be closely monitoring any future transfers to gauge potential market impact.
Mt. Gox was once the largest Bitcoin exchange in the world, handling 70-80% of all Bitcoin transactions before it suffered a massive hack in 2014, losing 850,000 $BTC.
The company was declared bankrupt later that year. Since then, a court-appointed trustee has been overseeing the bankruptcy proceedings and working on compensating creditors.
The trustee has stated that some creditors have yet to complete the required procedures to receive their repayments. Additionally, creditors have the option to receive their payouts in Bitcoin.
A Reddit poll conducted in July 2024 in the Mt. Gox Insolvency subreddit suggested that many creditors were not in a rush to sell their Bitcoin payouts. The poll showed that 56% of 467 participants planned to hold onto their Bitcoin instead of selling immediately.
Mt. Gox has also made other significant Bitcoin transfers in recent months. In December last year, it moved over 24,000 $BTC worth nearly $2.4 billion to an unknown address after Bitcoin hit $100,000. Two weeks later, it transferred 1,620 $BTC through several unidentified wallets.
With creditor repayments on the horizon and ongoing large-scale Bitcoin movements, the cryptocurrency community will be closely watching Mt. Gox’s next steps.
Any additional transfers could further impact Bitcoin’s price and market sentiment in the coming months. At the time of press, Bitcoin traded in the green for $88,156, slightly up by about 1% in a day.
