Bitcoin Price Sideways as Mt. Gox Neutralises ETF Inflows

The latest developments in the crypto market reveal a significant shift in Bitcoin price dynamics as the defunct crypto exchange Mt. Gox moved over 47,500 Bitcoin (BTC), worth approximately $3.2 billion, to multiple addresses. This major transfer has countered the positive impact of substantial Bitcoin ETF inflows, causing a noticeable effect on the Bitcoin price.

Mt. Gox’s Massive Bitcoin Transfer

According to Arkham, Mt. Gox transferred 42,600 BTC ($2.85 billion) to an address starting with 15yPU at 13:06 UTC+8. Subsequently, the defunct exchange’s cold wallet moved:

• 2,238 BTC ($149 million) to Bitstamp
• 2,871 BTC ($191 million) to an unmarked address

Despite these transactions, Mt. Gox still holds approximately 90,300 Bitcoin, valued at around $6.02 billion. Further details reveal that Mt. Gox sent 5,110 Bitcoin, worth approximately $340 million, to four separate Bitstamp addresses. Bitstamp is one of the five exchanges collaborating with the Mt. Gox Trustee to return funds to creditors. Additionally, the exchange transferred 1,598 BTC, worth around $106.3 million, to a Bitstamp cold wallet starting with 3QTCJEY, and 2,239 BTC ($149.1 million) to a wallet beginning with 3QVD5Hv.

Impact on Bitcoin Price

Bitcoin experienced heavy selling pressure due to the repayments initiated by Mt. Gox. The Bitcoin price dropped by almost 2% in the last 24 hours, affecting its bullish momentum towards $70,000. Currently, BTC trades at an average price of $67,500.

Data from Coinglass shows that around $3 million worth of long and short positions on BTC’s price were liquidated in the last 24 hours. Notably, over $2.43 million (80.99%) of the liquidated positions were long bets, indicating that bulls were optimistic about a positive run, but Bitcoin failed to deliver.

ETF Inflows help Bitcoin Price

Despite the turmoil caused by Mt. Gox, spot Bitcoin ETFs have maintained a net inflow streak for 12 consecutive days. On July 22, 2024, ETFs recorded a total net inflow of $486 million. Significant inflows included:

• BlackRock’s iShares Bitcoin Trust (IBIT) with $526 million in a single day. Read More
• Fidelity ETF FBTC with a net inflow of $23.72 million

The day before, iShares Bitcoin Trust recorded an inflow of $526.7 million, the highest single-day tally since March. BlackRock’s IBIT alone has seen an inflow of $19.5 billion since its inception.

Conclusion

While the consistent inflows into Bitcoin ETFs highlight ongoing investor confidence, the substantial movement of Bitcoin by Mt. Gox has neutralized this positive sentiment. The Bitcoin price continues to be influenced by significant market events, demonstrating the volatile nature of the cryptocurrency market. It remains to be seen how the balance between ETF inflows and large-scale Bitcoin transfers will play out in the coming days.

Key Takeaways:

• Mt. Gox moved over 47,500 BTC, worth approximately $3.2 billion.
• Bitcoin price dropped by almost 2%, currently trading at $67,500.
• Spot Bitcoin ETFs maintained a net inflow streak for 12 consecutive days.
• BlackRock’s iShares Bitcoin Trust recorded significant inflows, reinforcing investor confidence.