Can Bitcoin fall more as Mt gox moves 956 million worth Bitcoin

Bitcoin fall concerns returned this week after a major Mt Gox wallet movement shook the market. The defunct exchange shifted 10,608 BTC worth around 956 million dollars late Monday, its largest transfer in eight months. The move arrived at a difficult time, with Bitcoin already struggling to hold key support levels.

Mt Gox wallet activity shocks traders

Blockchain analytics platform Arkham Intelligence confirmed the details of the transfer. Around 10,422 BTC went to an unknown address. Another 185.5 BTC moved into an Mt Gox hot wallet. Onchain Lens pointed out that this is the first major activity from the exchange since March 2025.

Mt Gox still controls roughly 34,689 BTC valued at more than 3 billion dollars. These holdings sit under Japan’s court-supervised rehabilitation process. The exchange collapsed in 2014 after losing around 850,000 BTC to a hack, a disaster that pushed it into bankruptcy. Mt Gox once handled 70% of global Bitcoin trading volume, so its unresolved holdings remain one of the market’s long-standing risks.

The repayment deadline was recently pushed back to October 2026. Many creditors have waited over ten years for compensation. Every time the exchange moves coins, traders worry that repayments could begin, potentially leading to fresh selling pressure.

Bitcoin fall deepens as price hits multi-month lows

Bitcoin’s price has taken heavy damage over the past few weeks. It fell below 90,000 dollars for the first time in seven months and briefly reached a low of 89,953 dollars during Asian trading on Monday. The cryptocurrency has dropped more than 25% from its peak above 126,000 dollars set in early October.

CoinGlass shared data showing that the fear and greed readings slipped to extreme fear as sentiment changed quickly. It has also lost the critical 200-day moving average. This level is commonly referred to as an indicator of long-term trend strength. Its relative strength index is currently near 31 without a clear signal of momentum or trend.

Why the market is falling beyond Mt Gox

The Mt Gox move added stress, but it is not the only catalyst behind the Bitcoin fall. The broader market is facing multiple pressure points at once.

ETF outflows accelerate: Spot Bitcoin ETFs recorded almost 870 million dollars in outflows in a single session. More than 2 billion dollars left crypto investment products last week.

Rate-cut expectations fade: Investors are preparing for a longer period of higher interest rates as the Federal Reserve signals caution. 

Long-term holders sell: On-chain data shows long-term holders moved about 815,000 BTC in the past 30 days. 

Tech stocks pull back: Leading AI and tech shares are also falling, and Bitcoin often moves in the same direction as high-risk tech assets.

These factors combined have created a rough environment for digital assets.

If you want to understand how long-term buyers approach volatile periods like this, check out our guide on dollar cost averaging Bitcoin during bear market returns.

Can Bitcoin fall further from here

Analysts remain divided. Some think Bitcoin may still have room to drop if it fails to hold current support zones.

Bitcoin has an unfilled CME futures gap of around 91,970 dollars, a level the market often revisits. Open interest in perpetual futures has fallen from its peak near 94 billion dollars to roughly 68 billion dollars, showing reduced appetite for trading risk.

Even so, some metrics suggest the selling may slow. Realized losses have started to flatten. Periods where short-term holders capitulate often mark local bottoms. Fear indicators sometimes turn out to be early signals of recovery.

Institutional interest has not disappeared either. Recent filings show Harvard University increased its holdings in BlackRock’s IBIT Bitcoin ETF to around 443 million dollars. Moves like this indicate that major investors still view Bitcoin as a long-term asset despite short-term volatility.

How the Mt Gox factor could shape the next move

The big question is whether the recent transfer signals that repayments are coming soon. In past cycles, Mt Gox wallet activity often started before distributions were announced.

If repayments begin, many creditors are likely to sell some of their recovered Bitcoin. After more than a decade of waiting, taking profit is an understandable choice. With nearly 35,000 BTC still held by Mt Gox, any release of funds could influence short-term price movement.

However, the current market has deeper liquidity than in earlier years. Bitcoin ETF trading volume, institutional participation, and stronger exchange infrastructure may help absorb selling pressure. The long repayment schedule through 2026 also spreads out the potential impact.

What levels matter next

Several zones will determine Bitcoin’s direction over the next weeks.

Key support: 89,500 to 92,000 dollars
If broken: 84,000 to 75,000 dollars could come into play
First resistance: 100,000 dollars
Major trigger for recovery: A move back above the 200-day average near 110,000 dollars

Macro conditions remain the biggest influence. The Federal Reserve’s upcoming decision in December could shift expectations for rates, which may impact flows into risk assets, including crypto.

Bitcoin’s fourth quarter has historically been volatile. Both sharp rallies and steep drops have happened during this period in previous years.

Final thoughts

The Bitcoin fall linked to Mt Gox has added stress to an already fragile market. Bitcoin prices are at their lowest point in previous months, and fear is in the air; thus, the short-term outlook is still uncertain. One thing we know is that Bitcoin has rebounded from worse situations. Nevertheless, the long-term fundamentals of Bitcoin, including scarcity and institutional buying, still have not changed.

Traders are keeping a watchful eye on the Mt Gox wallets, ETF inflows, and macro data. For now, the question will be whether Bitcoin will go lower or if we will have a bottom formation, based on those reactions over the next few weeks.

At the time of writing the article, BTC is trading at $90,413.35 after a loss of 2.06% in the past 24 hours.

Disclaimer

This article is for informational purposes only. It is not financial or investment advice. Cryptocurrency markets are volatile. Always do your own research and consult a licensed financial professional before making investment decisions.

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