Mt. Gox News: How 2,570 BTC Move Could Influence Bitcoin’s $88K Bull Run

The post Mt. Gox News: How 2,570 BTC Move Could Influence Bitcoin’s $88K Bull Run appeared first on Coinpedia Fintech News

After the US presidential election, Bitcoin’s price has jumped by nearly 30%, reaching $88,244.01. In the past week, Bitcoin has grown by 29.8%, boosting the overall crypto market. As a result, the crypto market saw a notable 5.5% increase in just the last 24 hours. 

Despite the bullish momentum, the recent market activity of Mt. Gox has raised the question if this rally is short-lived. As per Arkham Intelligence report, Mt. Gox, the infamous bankrupt crypto exchange, has made waves again by transferring 2,570 BTC—worth approximately $228 million—to an unknown wallet.

This significant move has sparked concerns in the crypto community about a potential dip in Bitcoin’s price, which has been on an upward trend recently. Despite Bitcoin continuing its strong rally, these large movements of BTC are raising red flags among investors.

Is this the right time to invest in Bitcoin or investors should wait for an entry point? Let’s dive into the Mt. Gox risky trap for Bitcoin. 

Bitcoin has been seeing impressive gains, with its price surging past $80,000. However, the recent transfer from Mt. Gox—part of a series of larger BTC movements in recent days—has caused uncertainty. While the transfer does not immediately affect the price, the large volume of BTC moved could lead to future selling pressure, potentially slowing the current rally.

Despite Bitcoin’s impressive price action, analysts are warning of a short-term correction. Investor Alistair Milne has suggested a 20-25% pullback in Bitcoin’s price before it can continue its upward trajectory. If this prediction comes true, Bitcoin’s price could dip back to around $60,000, especially if further BTC from Mt. Gox is sold off on the market. However, Milne believes that this dip will be short-lived and Bitcoin will eventually reach $100,000, driven by rising institutional and retail demand.

While short-term fluctuations are expected, analysts maintain an optimistic long-term outlook for Bitcoin. VanEck CEO, Jan van Eck, has forecasted that Bitcoin could eventually reach $300,000, driven by its growing role as “digital gold” and increasing institutional adoption. Bitcoin’s role as a store of value is becoming more prominent, and as it gains market share compared to gold, its price could skyrocket even further in the coming years.

Interestingly, just last week, $1.37 billion was added to Bitcoin funds, highlighting the growing demand. As more individuals and institutions adopt Bitcoin as part of their portfolios, the crypto is poised to break new price barriers, eventually surpassing the $100,000 mark and possibly reaching the $300,000 level in the distant future.

Could this massive move trigger a short-term sell-off AND market volatility?