Mt. Gox’s $9 billion BTC transfer raises dump fears

At the same time that $9 billion worth of Bitcoin was transferred from Mt. Gox accounts to an unknown address, the crypto market valuation began to drop today.

There were thirteen transactions involving the funds, according to recent wallet activity. In the Asian session on May 28, there was a smaller $160 transaction, and on May 20, there was a likely $3 test transaction. Bitcoin worth between $1.2 million and $2.2 billion was involved in the other transactions.

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After a cyberattack caused the loss of hundreds of thousands of bitcoins, the world’s largest Bitcoin exchange, Mt. Gox, closed its doors in 2014. Creditors have been waiting for their shares to be repaid since then, which is likely to fuel more selling pressure on Bitcoin markets.

Bitcoin ETF inflows are flatlining againBitcoin ETF inflows are flatlining again

Following a period of declining inflows into U.S.-based spot Bitcoin ETFs, the cryptocurrency market saw a downturn today. Over the past three days, the asset value of these funds has stayed relatively constant at $13.68 billion, as of May 28.

Flatlining ETF inflows in the context of the cryptocurrency market indicate that traders are being cautious due to uncertainty about the short-term trajectory of the market. They may be putting off major investments or budget reallocations because of this.

If traders and investors have purchased their stocks at a discount and now see uncertainty or negative risk, they may choose to sell to lock in a profit. As more people try to cash out their gains, this selling pressure can lead to a general downturn in the cryptocurrency market.

A technical crypto sell-offA technical crypto sell-off

Looking at the crypto market from a technical standpoint, today’s dip is just one more leg of a larger consolidation pattern. As seen by the red circle in the following graphic, the market capitalization of the cryptocurrency industry has been largely stable between $2.47 trillion and 2.56 trillion since May 20. Following a test of the $2.65 trillion mark as resistance, prices have fallen today.

From a bird’s-eye view, the crypto market appears to be consolidating around the bull flag-shaped top trendline of its dominant descending channel pattern. When prices climb to equal or exceed the height of the prior uptrend and break above the upper trendline, we say that the bull flag has resolved.

However, in June, the market may target $3.10 trillion after breaking out of its bull flag pattern area. In contrast, the market might retest the lower trendline, which is located at approximately $2.10 trillion, as its next negative objective, should it retrace from the flag’s upper trendline.