The latest move saw Mt. Gox transfer 0.021 BTC to a new wallet 10 minutes ago. This might mean that plans are underway to pay back creditors, given that 90,344 BTC (worth $6 billion) are held by Mt. Gox.
These little transactions frequently signal bigger fund movements, which concerns the market about possible effects on the price of Bitcoin. It is interesting to note that prior exchange transfers did not cause market meltdowns.
Even with sizable holdings, the majority of investors are not liquidating their Bitcoin holdings in bulk. They are attempting to maintain the market’s stability and liquidity instead. Even in cases where significant volumes are moved, this approach has prevented strong price drops.
With its price hovering around $67,000, Bitcoin’s value is relatively stable and might not be affected by the move too much. Essential moving averages that traders use to determine the direction of the market are the 50 EMA, 100 EMA and 200 EMA.
Despite the possible inflow of Mt. Gox’s Bitcoin to the market, it appears from recent movements that Bitcoin is holding strong. In light of previous actions, it is most likely that Mt. Gox will keep transferring money in a way that causes the least amount of disturbance to the market.
The consensus among on-chain and market analysts is that the market can handle these transfers without suffering a significant crash, but traders should still keep a close eye on these transactions.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
