False Trigger about Mt. Gox Bitcoin Wallet Transfer Tanks BTC Price to $27,000 but It Recovers Fast

Over the last 48 hours, the Bitcoin price witnessed massive volatility sending jitters across the entire investor community. Earlier this week on Tuesday, the Bitcoin price shot up all the way to $30,000 following the news of a crisis-like situation at the First Republic Bank. But during Wednesday’s trading session, Bitcoin faced strong selling pressure with the $BTC price tanking all the way to $27,000. The $BTC price fall came as news circulated that the US government has liquidated a significant portion of its remaining Mt. Gox Bitcoin ($BTC) holdings. This pushed the market into a panic-like situation leading to strong volatility and market instability.

Citing an alert from Arkham Intelligence, a popular crypto news account on Twitter – DB (tier10k) – tweeted that Mt. Gox and US government wallets have been selling in heavy numbers.

[DB] Mt Gox and US Govt Wallets Making Transactions: Arkham Alert

— db (@tier10k) April 26, 2023

This led to a frenzy of sell orders for Bitcoin in the open market thereby dragging its price down. Soon as the news regarding the notifications from Arkham Intelligence spread in the market, it issued a clarification on the matter.

Arkham Intelligence Issues Clarification

Through its official Twitter handle, Arkham Intelligence issued a clarification noting that DB has set two alerts on $BTC transactions of more than $10,000 while naming those alerts as “Mt. Gox” and “US Gov”.

Arkham said that DB inferred those certain Bitcoin addresses were transacting based on the labels that he had himself set. In a message, Arkham noted:

“We have conducted an investigation of the DB Alert situation, and determined that the Arkham alerts were sent accurately in this case. DB set two alerts on all Bitcoin transactions above $10k USD, with no counterparties set, then named the alerts “Mt Gox” and “US Gov”. When we fixed a bug causing us to not send alerts on configs like this, he then correctly received many alerts based on his parameters. No one received inaccurate alerts, they simply began receiving the alerts they had previously set.”

“Neither the alert nor the tweet could have caused the sharp $BTC price drop today, as the drop occurred between 19:17 and 20:01 UTC, and the alerts and tweet were sent afterward at 20:07 UTC and 20:08 UTC respectively,” added the company.

Soon as Arkham issued the clarification, Bitcoin ($BTC) is once again back on the recovery path and is currently trading at $29,000 with a market cap of $562 billion. Market analysts expect that the $BTC price can continue to rise from here onwards.