Mt. Gox’s second billion-dollar Bitcoin transfer in a week has fueled concerns over potential sell-offs.
The defunct cryptocurrency exchange Mt. Gox has moved a substantial portion of its Bitcoin (BTC) holdings as the crypto market plummeted on March 11.
According to data by Arkham Intelligence, Mt. Gox transferred 11,833 BTC in total. Of this, 11,501 BTC (roughly $905.1 million) was sent to a newly created wallet, while 332 BTC ($26.1 million) was directed to a warm wallet.
Blockchain analysis platform Spot On Chain noted that the transaction to the warm wallet is likely intended to facilitate upcoming repayments.
This is the second Bitcoin transaction in less than a week. Interestingly, Mt. Gox also moved 12,000 BTC (about $981 million) on March 6, with a portion of those funds sent to BitGo, one of the custodians handling creditor repayments.
These movements have resulted in speculation that more Bitcoin could soon hit the market, adding further pressure to the already volatile market.
Bitcoin Price Drop
Mt. Gox’s latest Bitcoin transfer coincides with a sharp market downturn, pushing Bitcoin to a four-month low of $76,800 before recovering to $81,500 at the time of writing, according to CoinMarketCap. Meanwhile, the Crypto Fear and Greed Index plunged into “extreme fear” levels.
Bitcoin’s 200-day Simple Moving Average (SMA)–a widely watched long-term trend indicator–currently sits at $83,454. BTC’s drop below this level suggests a potential trend shift from bullish to bearish unless a quick recovery occurs.
The Moving Average Convergence Divergence (MACD) indicator has recorded deepening red histogram bars, indicating strong bearish momentum. However, if buyers step in at these levels, we could see a MACD crossover that could signal a reversal.
Meanwhile, Bollinger Bands show Bitcoin trading near the lower band at $77,440, indicating an oversold condition.
Historically, touching the lower Bollinger Band often leads to a bounce, but sustained downward pressure could push BTC to test the next key support at $66,000.
“Messy” Third Year of the Bull Cycle
On-chain analyst Ali Martinez weighed in on the price action, reminding traders that year three of a Bitcoin bull market is historically marked by increased volatility.
“Those who navigate [year 3 of a bull market] well often come out on top,” Martinez wrote on X.
BitMEX co-founder Arthur Hayes also stated that such price drops are “normal” in the bull market. He predicted that Bitcoin could slump to $70,000 and investors need to focus on long-term Bitcoin potential.
