Mt Gox Moving $950M in Bitcoin Sparks Panic of Crash to $56K Realized Price

The beleaguered crypto exchange Mt Gox moved over 10,608 BTC to a new wallet and Kraken on Tuesday. This sparked panic in the crypto community amid massive crypto liquidations in Bitcoin, Ethereum, XRP, BNB, Solana, Cardano, and other top altcoins today.

Mt Gox Transfers Bitcoin Worth $936 Million

After Bitcoin tumbled below $90K, defunct Japanese crypto exchange Mt Gox moved over 10,423 BTC worth $936 million to a new wallet. Grabbing attention from crypto market participants, as the transfer occurred after 8 months of inactivity, Lookonchain reported on November 18.

After a few hours, Mt Gox deposited another 185.2 BTC worth $16.8 million into Kraken. This caused selling pressure to mount amid the broader crypto market crash.

Mt Gox-related wallet movements are typically considered bearish. The distributions are bearish for BTC price because many of the creditors may decide to liquidate into cash.

BTC Risks Falling to $56K Realized Price?

Uncertainty in the crypto market continues, with long-term holders (LTH) and whales continuing to sell BTC. Whereas, some are buying the dip, such as the El Salvador government purchasing 1,090 BTC worth $101 million.

Mt Gox’s large amounts of Bitcoin movements sparked panic in the crypto community. Notably, investors have lost massively as the global crypto market cap tumbled by more than $1.20 trillion over the past month.

If historical patterns repeat this cycle, BTC is likely to continue falling until reaching its realized price. Crypto analyst Ali Martinez claimed that when BTC price breaks below the 200-day SMA, it typically falls under its realized price.

Currently, BTC realized price sits at $56K. Analysts have noted that every BTC death cross formation has marked a local bottom for Bitcoin over the past year. However, a death cross formation in 2022 triggered a bear market.

If this is officially a bear market, crypto market participants will see another fall to on-chain support at $85K and towards $56K next. CryptoQuant’s head of research Julio Moreno claimed it is a bear market and recommended that participants stop using bull market local bottom signals.

BTC price dropped 5% in the past 24 hours, currently trading at $90,464. The 24-hour low and high are $89,300 and $95,841, respectively. Trading volume has increased by 50% in the last 24 hours, indicating that traders are closely watching amid deeper crash concerns.