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As reported earlier, Mt. Gox transferred Bitcoin worth more than $855m to unidentified wallet addresses in August. The data showed two large transactions. One for $74m was directed to a wallet identified as the exchange’s cold storage, and another for $784.2m was sent to an unknown wallet address.

In July, the Japanese crypto exchange that collapsed in 2014, made a transfer of $2.5 billion worth Bitcoin. Per data tracked by blockchain analytics firm Glassnode, 59,000 of the recovered 142,000 Bitcoin has been distributed to creditors using the Kraken and Bitstamp cryptocurrency exchanges.

Mt. Gox’s Repayment Deadline Postponed

Last month, the Rehabilitation Trustee, that manages Mt.Gox’s assets, postponed the deadline to distribute remaining assets to creditors by another year to October 31, 2025.

“Many rehabilitation creditors still have not received their Repayments because they have not completed the necessary procedures,” the trustee’s statement said.

Meanwhile, the Mt. Gox repayment process and Bitcoin liquidation have raised significant concerns about its impact on the asset’s spot prices.

After reaching a new 90-day peak of $73,295 on October 30, the world’s largest crypto asset has corrected, falling 5.5% to a brief plunge of $69,000.  

Ethereum also experienced a drop, with a 5.5% fall to around $2,500, while Dogecoin declined 9% to $0.16. This sell-off coincides with broader market losses across altcoins, with Binance Coin, XRP, and Solana down between 3% to 4% each.

Meanwhile, the surge in Bitcoin ETF activity has been noteworthy, with BlackRock’s Bitcoin ETF (IBIT) leading a record $3.3 billion in October trading volume, according to Farside Investors. This “institutional FOMO” drove over $870 million into Bitcoin ETFs on Tuesday, Oct. 29, with IBIT accounting for $640 million. 

According to Eric Balchunas, Bloomberg’s ETF strategist, BlackRock’s ETF inflows “shattered records,” while Fidelity’s Bitcoin ETF saw the second-highest inflows at $12.6 million. Analysts project this volume increase could push Bitcoin ETFs to surpass even Satoshi Nakamoto’s Bitcoin holdings within weeks.

In related market action, retail interest has lagged, yet institutional demand has heightened ETF inflows. Miles Deutscher, a crypto analyst, noted that retail activity was pivotal in prior bull cycles and could again drive Bitcoin’s price upward, potentially surpassing the $100,000 mark.

Published on: 11/1/24, 8:43 AM