Bitcoin May Drop to $54,000 as Mt. Gox Moves $860 mln in BTC

On August 21, 2024, the defunct and oldest crypto exchange, Mt. Gox, moved a significant over 14,530 Bitcoin (BTC) worth $860 million in the last 24 hours, as the on-chain analytic firm Spotonchain reported. Following these transactions, the overall cryptocurrency market experienced massive selling pressure.

Mt. Gox $860 Million BTC Transfer

With the recent transfer, Mt. Gox now holds a massive 32,898 BTC worth $1.95 billion across 28 wallets. 

Since July 5, 2024, Mt. Gox. has transferred a substantial 107,958 BTC worth $6.81 billion to various centralized exchanges including Bitstamp, SBIVC, Kraken, OKX, and Binance for creditor repayment. However, these billions worth of Bitcoin are still in the hands of these exchanges as creditor repayment has yet to begin.

Expert Comments for Mt. Gox’s Creditors

However, concerns remain about what will happen once these creditors receive their BTC and potentially start selling it off. Over this concern, Maria Carola, the CEO of StealthEX a cryptocurrency exchange, made a statement that creditors are opting to hold their currencies due to the potential of BTC and its rapid evolution and significant adoption. 

Despite this significant transfer, BTC is trading near $59,720 and has experienced a price surge of over 1.5% in the last 24 hours. Meanwhile, its trading volume has dropped by 18% during the same period, indicating reduced participation from traders.

Bitcoin Technical Analysis and Key Levels

According to expert technical analysis, Bitcoin (BTC) looks bearish as it is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. Additionally, it has been consolidating within a small range for the last 14 days.

If BTC breaks down this consolidation zone and the daily candle closes below the $57,880 level, there is a high possibility it could fall to the $54,000 level or even more. 

As of now, market sentiment is extremely bearish. In addition to the Mt. Gox, gold has also reached its all-time high, which potentially creates a fear in the cryptocurrency landscape.