Mt. Gox Repayment Triggers $544 Million Liquidation in Crypto Market
Bitcoin Tests $110K Support as Market Braces for Mt. Gox Creditor Repayments Amidst Surge in Crypto Liquidations
Key Points
- Cryptocurrency market liquidations have surged to $538 million, led by Bitcoin and altcoins.
- Mt. Gox is set to begin repaying creditors later this month, causing market concerns.
The value of liquidations in the cryptocurrency market has spiked to a significant $538 million. This is due to increased selling pressure on both Bitcoin and other alternative cryptocurrencies. On October 16, Bitcoin recorded a 1.25% decrease, testing a vital support level at $110,000. This comes as Mt. Gox, the infamous cryptocurrency exchange, prepares to start repaying its creditors later this month.
Market Liquidations and Bitcoin Whales
Data from CoinGlass reveals that total market liquidations have risen to $544 million, with $394 million being in long liquidations. In the past 24 hours, a total of 195,333 traders have been liquidated. Ethereum also contributed to this figure.
Santiment, a blockchain analytics firm, reported that a key cohort of Bitcoin whales has begun to take profits. Wallets holding between 10 and 10,000 BTC, which collectively control 68.68% of the total supply, have offloaded 17,554 BTC in recent days. However, these large holders have accumulated 318,610 BTC since the start of 2025, indicating that overall institutional and whale confidence remains strong.
Altcoins and Market Volatility
In addition to Bitcoin, altcoins also contributed to the market liquidations. The price of Ethereum is testing critical support at $4,000 as bulls and bears wrestle for control. Other altcoins, including XRP, Solana, Dogecoin, and Cardano, have dropped by 2-4% amid this market volatility. This suggests that volatility is likely to persist ahead of key macro events, such as Federal Reserve rate cuts.
Mt. Gox and Repayment Concerns
The long-inactive Mt. Gox wallets have shown on-chain activity for the first time in seven months, reigniting market concerns ahead of a significant repayment deadline. Blockchain data from Arkham indicates that the defunct exchange still holds approximately 34,000 BTC designated for creditor repayments. The recent movement coincides with the nearing expiration of a court-approved repayment extension on October 31, 2025.
The extension was granted earlier this year after some creditors encountered procedural and technical delays in completing repayment steps. As the deadline approaches, market participants are increasingly wary of potential sell-side pressure. CryptoQuant analyst Mignolet suggests that if the Mt. Gox trustee cannot secure another extension, the remaining funds, currently valued at $3.88 billion, will soon enter the market. This could potentially trigger market fear, uncertainty, and doubt.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street giants collectively raise rate hike forecasts, US Treasury futures continue to fall, gold drops over 1% to break 4000
After the US October CPI exceeded expectations, Goldman Sachs and Nomura added a forecast for an interest rate hike in March next year, while Deutsche Bank included a forecast for a rate hike in January next year. Currently, the market has fully priced in a 25 basis point rate hike in December, with a 13% probability for a 50 basis point hike. On Wednesday, the US Treasury spot market was closed, but Treasury futures continued to fall, with corresponding yields rising by about 2 to 4 basis points, and spot gold came under pressure, dropping by 1.1%.
No Need to Worry About the Cooling Down of AI Data Center Construction? The US Import Boom Is Unlikely to Subside in the Short Term, Real Impact May Come in 2029
It takes an average of 4.8 years from finalizing investment to starting construction of a data center project, and an additional 2.6 years from construction start to becoming operational. Servers usually cannot be installed until after the building structure and racks are completed. For trade partners such as Taiwan (China), South Korea, and Mexico who rely on US data center supply chain demand, the inertia in construction timelines provides at least a one- to two-year buffer for future exports.
Federal Reserve Major Debate: When Should the Tenure of “Number Three” Williams End?
The main point of contention is whether Williams should step down in June 2028, upon completing a full 10-year term, or in June 2027, when he reaches the mandatory retirement age of 65. Analysts point out that the Federal Reserve Board holds ultimate discretion; if he leaves early, Fed Chair Waller would be able to assert greater control over the appointment to this critical position. However, forcing Williams to shorten his term could easily be interpreted as political manipulation. Williams himself is expected to serve until June 2028.
Crypto prices
More
