Recession Fears Weigh Down Crypto Market, Mt. Gox Moves ~$1B, and El Salvador Builds Up Bitcoin Reserve

Takeaways

• Bitcoin slid below $80,000 this week as concerns over rising tariffs and recession fears spurred a broad crypto sell-off: The US stock market also felt significant selling pressure, with the Dow and S&P 500 posting their worst days of the year on Monday.
• Mt. Gox transferred around 11,500 bitcoin, worth close to $1 billion, to an unmarked wallet: Despite initiating repayments in July 2024, the exchange still retains $2.8 billion in bitcoin that it may eventually be forced to sell.
• HUD is evaluating blockchain and cryptocurrency for potential use in streamlining operations: While discussions have raised the prospect of a stablecoin for payments, the agency has yet to commit to any specific implementation.
• El Salvador has amassed 6,111 bitcoin for its strategic bitcoin reserve despite IMF-imposed restrictions: President Bukele remains determined to expand its crypto holdings in a bid to demonstrate bitcoin’s potential as a key national reserve asset.
• Cantor Fitzgerald has tapped Anchorage Digital and Copper.co to serve as custodians for its new Bitcoin financing business: The initiative aims to provide leveraged access to bitcoin for institutional investors.

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Bitcoin Dips Below $80K as Fears of US Recession Swell

Bitcoin prices experienced a sharp decline earlier this week, falling below $80,000 amid a wider market sell-off. Ether also tumbled to its lowest level since October 2023, while other major altcoins like Dogecoin, XRP, and Cardano also faced selling pressure. Crypto prices have begun to recover slightly, buoyed in part by Wednesday’s CPI report that showed inflation increased 2.8% YoY last month, below analyst expectations.

The latest price movements come after President Donald Trump recently doubled tariffs on Chinese imports to 20% and threatened further increases on Canadian and Mexican goods, though he later delayed these measures until April 2. US stock indices remained volatile in response to the measures, with the Dow and S&P 500 posting their worst days of the year on Monday. The Nasdaq also reacted negatively, posting its worst day in three years on Monday.

Since reaching an all-time high above $109,000 in November, the price of bitcoin has dropped around 30% despite a more friendly regulatory environment and plans to implement a strategic bitcoin reserve in the US.

Mt. Gox Transfers $905M in Bitcoin, Extends Creditor Payout Deadline

Defunct crypto exchange Mt. Gox transferred approximately 11,500 bitcoin, worth close to $1 billion, to an unmarked wallet on Monday, according to Arkham Intelligence data.

Previous Mt. Gox transfers have preceded creditor repayments, but it’s unclear if the current transfers will have the same result. Mt. Gox, which originally went bankrupt more than a decade ago, has postponed its payout deadline to October 31, 2025, after it began partial repayment this past July.

Once the world's largest bitcoin exchange, Mt. Gox suffered a massive hack in 2014, losing around 850,000 bitcoin. The company still holds approximately $2.8 billion bitcoin across its wallets, but it may eventually be forced to complete the creditor repayments, which could put downward pressure on bitcoin prices.

HUD Explores Crypto and Blockchain for Operational Innovation

The US Department of Housing and Urban Development (HUD) is reportedly assessing the possibility of integrating cryptocurrency and blockchain technology into its operational framework. The agency is said to have held multiple meetings to explore ways to leverage blockchain for monitoring grants and streamlining other processes, including using a stablecoin for payments to grantees. Specifics on the type of stablecoin or blockchain platform being assessed remain under wraps.

Although a HUD spokesperson said they have no plans to implement these solutions, the report aligns with President Trump’s recent push to make the US a global leader in the crypto space. At the White House crypto summit last week, Trump expressed hope that he would be able to sign stablecoin legislation into law by August.

El Salvador Bolsters Bitcoin Reserve Despite IMF Constraints

El Salvador has continued its aggressive accumulation of bitcoin despite mounting pressure from the International Monetary Fund. On Sunday, El Salvador purchased six more bitcoin, boosting its total holdings to 6,111.18 BTC, with a value of around half a billion US dollars. This expansion comes even after the country reached a deal with the IMF in December for a $1.4 billion loan. As part of the agreement, El Salvador was required to scale back its public sector bitcoin activities, a measure aimed at aligning with international financial norms.

Despite these constraints, President Bukele has made it clear that the country's bitcoin purchasing strategy remains unchanged. In a recent post on X, Bukele affirmed that the accumulation of bitcoin will persist, regardless of external criticism or regulatory pressures. The nation’s commitment to bitcoin acquisition has been lauded by the crypto community as an example of how bitcoin can play a role in government fiscal policy.

Cantor Fitzgerald Enlists Anchorage Digital and Copper for New $2B Bitcoin Financing Venture

Wall Street powerhouse Cantor Fitzgerald has partnered with Anchorage Digital and Copper.co to provide custody for its newly launched bitcoin financing business, which is kicking off with an initial $2 billion in financing. This venture is designed to offer institutional investors leveraged access to their bitcoin holdings by integrating traditional financing methods with crypto solutions.

The new platform, announced in July, will serve as a bridge between the conventional financial world and digital assets, reflecting Cantor Fitzgerald's broader ambition to integrate bitcoin into mainstream finance. Former CEO Howard Lutnick now serves as US Secretary of Commerce and is a strong advocate for crypto integration.

-The Gemini Team