Bitcoin Shaken, But not battered by Mt. Gox’s $2.8 Billion Outflows

Tuesday saw a brief decline in the price of bitcoin when the trustee in charge of the defunct Mt. Gox exchange transferred an astounding $2.8 billion worth of the cryptocurrency into two different wallets. Though they caution of a possibly chaotic week ahead owing to impending news events, analysts believe investors are buying the dip.

The large-scale transfers were briefly responsible for Bitcoin’s decline to $66,267.87, a little decrease from its price the day before, as discovered by blockchain analytics company Arkham Intelligence. But since then, the most popular cryptocurrency in the world has recovered and is now trading at $67,306.86, down just 0.2% from only one day ago.

This is taking place during a hectic week for Bitcoin. The US government transferring its own seized cash, the German government selling $2.8 billion in Bitcoin that it had seized, and the unpredictability surrounding the US presidential election have all caused challenges for the market.

Positive indicators are seen by several analysts despite these obstacles. Major cryptocurrency exchange Bitfinex indicates that there has been a drop in Bitcoin Exchange Reserves, indicating that big investors are gathering Bitcoin and keeping it in private wallets.

But experts also warn that things won’t necessarily go as planned. It’s predicted that the coming week would be “news driven and volatility filled” because of the ongoing US election, the possible introduction of an Ethereum ETF, and, of course, the payouts to Mt. Gox creditors.

Once a behemoth processing 70% of all Bitcoin transactions worldwide, Mt. Gox plummeted in 2014 with the loss of 850,000 Bitcoins due to a security breach. The exchange’s creditors are finally going to get their long-lost digital cash back after years of legal battles.