This morning, the exchange Mt. Gox transferred 47,228 BTC (worth up to $2.7 billion) from its cold wallet to a wallet starting with (1L7Xb…), and at the same time, Bitcoin’s price dipped to its lowest at $56,680.
On Thursday, the trustee responsible for overseeing Mt. Gox’s Bitcoin transferred approximately 47,228.73 BTC to an undisclosed address. This transfer, valued at about $2.7 billion, leaves Mt. Gox with around 141,687 BTC, worth nearly $8.1 billion. This significant transaction followed several test transfers earlier on July 4th. The trustee had previously announced that distributions would begin in July, but the exact date remains undetermined. In terms of total holdings, this new wallet currently ranks 19th among global BTC wallets.
The Bitcoin market has been on a continuous decline recently, attributed to several factors: sales by the German government, Mt. Gox repayments, and a slowdown in inflows to spot ETFs. Around 8:30 earlier, according to Arkham tracking data, Mt. Gox had transferred 47,228 BTC (about $2.7 billion) from a cold wallet to a wallet starting with (1L7Xb…), likely in preparation for repayment.
As a result, Bitcoin’s price plunged to $56,680 at the same time, nearing the previous low of $56,552 set on May 1st. At the time of writing, Bitcoin has rebounded to $57,298, with a 4.89% drop in the last 24 hours.
Ethereum briefly fell below $3,050, experiencing more severe fluctuations than Bitcoin. It touched a low of $3,039 earlier and has since rebounded to $3,089, with a 5.43% drop in the last 24 hours.
In the past 24 hours, the entire network has seen liquidations exceeding $510 million, double that of the previous day, with over 188,000 people facing liquidation.
As for the next support level for Bitcoin’s continued decline, cryptocurrency technical analyst Dom’s Crypto stated last night on X that the key support level of the 200 MA ($58,484) has been breached, and the next support level is at $56,700.
Bitcoin has broken through the key MA 200 (red), and BTC is severely oversold, with a support level at $56,700. If our daily closing price is above $56,700, there is a chance for a ‘bullish divergence’ and a reevaluation of $60,500.
Another analyst, Tuna KAYA, indicated that Bitcoin’s support level is at $56,500. If this level cannot be held, Bitcoin may drop to between $50,000 and $52,000.
Bitcoin has returned to the $56,500 support level. The RSI is at the bottom. If it holds here, it will form a double bottom. This situation attracts new buyers to the market, strengthening the new upward trend. If we lose $56,500, the $50,000~$52,000 band may emerge, a scenario we never wish to see.
The German government has been selling seized Bitcoins but still holds over 40,000 BTC, worth more than $2.3 billion. These sales are occurring alongside the anticipated distribution of Mt. Gox’s Bitcoin. To address the liquidation of Germany’s BTC, Tron founder Justin Sun has proposed buying the remaining Bitcoins from the German government OTC to minimize the impact on cryptocurrency prices.
According to blockchain intelligence firm Arkham, the German government continues to sell its seized Bitcoins, with the most recent sale on July 4th, worth up to $175 million in BTC.
“Germany’s government sells BTC worth up to $175 million,” Arkham shared on social media platform X on Thursday: “In the past 2 hours, the German government has transferred 1,300 BTC ($76 million) to exchange deposits at Kraken, Bitstamp, and Coinbase. They also moved 1,700 BTC ($99 million) to the 139Po address. These funds may be transferred to institutional services or OTC deposits.” The company added:
The German government still holds 40,359 BTC ($2.3 billion) in marked addresses on the chain.
Against the backdrop of the German government’s Bitcoin sales and Mt. Gox’s expected distribution to creditors this month, Bitcoin’s price has been under pressure. BTC’s price has fallen by 4% in the past day and by over 6% in the past week, breaking below $57,000 on Monday. Data from Arkham Intelligence shows that Mt. Gox wallets are conducting dust transfers or test transfers. Although the Mt. Gox trustee stated that distributions would begin in July, no specific date has been provided.
In response to the German government’s Bitcoin sell-off, Tron founder Justin Sun announced on Thursday that he is prepared to buy the remaining BTC OTC. Sun wrote on X: “I am willing to negotiate with the German government to buy all BTC OTC to minimize the impact on the market.”
What are your thoughts on the German government’s Bitcoin sales and Justin Sun’s proposal to buy the remaining Bitcoins?