The recent frenzy surrounding the Ethereum ETF had a major impact on the overall market, including Bitcoin. However, after reaching the $70,000 mark, the Bitcoin price experienced a slight dip before bouncing back up to $72,000. Unfortunately, a recent news report seems to have caused some damage to the market.
Just moments ago, it was revealed that a cold wallet linked to the Mt. Gox exchange, a central player in the cryptocurrency world, transferred 12,400 Bitcoins to an unknown address. This transfer was executed in five separate transactions, with the first four involving 2,000 BTC each and the last one involving 2,240 BTC.
Currently, the Mt. Gox address still holds 137,892 BTC. However, it is important to note that the exchange plans to distribute its 142,000 BTC and 143,000 BCH assets to creditors by October 31, 2024.
The reason behind this recent transfer remains unknown, but it has had a negative impact on the Bitcoin price. As a result of the news, the price of Bitcoin plummeted within minutes, dropping from $69,400 to $68,400. As of now, it is trading at around $68,700.
Despite the decline, Bitcoin’s market cap only experienced a slight decrease to $1.35 trillion, reflecting a drop of less than 1%. However, the 24-hour trading volume saw an increase following the sudden drop, reaching $27.2 billion after a 65% positive change.
This surge in trading volume can be interpreted in different ways. On one hand, it may indicate that investors are eager to buy Bitcoin. On the other hand, when combined with the price drop, it could also suggest that short selling is taking place.
It is important to note that the information provided in this article is not intended as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
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