Mt. Gox Repayment Triggers $544 Million Liquidation in Crypto Market

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.