Mt. Gox Bankruptcy Trustee back at it?
The recent decline in crypto prices may have had several contributing factors.
As was mentioned yesterday, the UPbit exchange was raided by local authorities for what they were calling fraud.
More about that can be seen here:
https://steemit.com/upbit/@jrcornel/crypto-seeing-red-as-upbit-gets-raided
It is unclear exactly what they did, but the rumors are that they lied about their balance sheets to mislead investors and possibly also improperly used customer holdings.
The exact phrase was, "sold coins that they didn't actually own".
However, it appears there was likely more to the weakness than just the UPbit raid.
As was reported by several news outlets yesterday, it appears there was also some movement from the Mt. Gox Bankruptcy Trustee's wallet.
(Source: https://www.ccn.com/8200-btc-moved-from-mt-gox-wallet-possible-sell-off-affects-bitcoin-price/)
As you can see, just over 8k bitcoins moved from the wallet address that is known to be his.
Whether those coins actually get sold or not is anyone's guess, but at this point any time those coins move is enough to cause selling in the market.
Another point of interest is that about 16k coins moved from those wallets a few weeks back as well.
Whether these orders are getting filled OTC or on the open market is hard to tell at this point, but he did sell coins on the open market before when he sold.
(Source: https://www.ccn.com/8200-btc-moved-from-mt-gox-wallet-possible-sell-off-affects-bitcoin-price/)
All this has added up to major weakness leading into a usually very bullish event.
The Consensus conference is expected to have over 8k people in attendance and is often a very bullish event for cryptocurrencies every year.
The savvy trader might have used this morning's weakness to pick up some cheap coins just in time for the seasonal rally.
Will history repeat and us see a significant rally again on the heels of the conference or is the latest round of bearish news too much for the seasonality aspects to take over?
The good news is that we won't have to wait long to find out.
The conference starts on Monday (May14th) and lasts through Wednesday (May 16th).
Stay informed my friends.
Follow me: @jrcornel
Thanks for the info. Always good analysis my Friend 👍
The bankruptcy trustee for the defunct Mt. Gox exchange announced yesterday that he had sold $405 mln in Bitcoin over the last few months, a total of 35,800 BTC and 34,000 BCH. The selling of such massive volumes could be a big part of the reason Bitcoin fell from its high of $20,000 to its current price of $9,300. Even if the coins were traded over-the-counter (OTC) rather than on exchanges, it still would have suppressed demand, by filling the needs of buyers who otherwise would have bought off exchanges.
Yep, good point. That combined with the tax related selling and shorting by wall street and we likely have our reasons for the big decline.
Valid point sir. I agreed
Yes yesterday and todays fall is caz 8,200 BTC Moved From Mt. Gox Wallet, Possible Sell-Off Affects
https://www.ccn.com/8200-btc-moved-from-mt-gox-wallet-possible-sell-off-affects-bitcoin-price/
I hear that big investors are buying Bitcoin away from the exchanges so that it doesn't jack up the price of Bitcoin. But they have no problem creating FUD and selling BTC on the exchanges. It all seems like a desperate attempt to keep the price of Bitcoin down for now. This tells me that BTC is resilient and is going to explode in the future. Hopefully, sooner than later.
Every BTC run, Mt Gox has to bring it back down
That certainly has been the trend of late. Hopefully they are getting mostly through the forced selling at this point. I am sure there are large bock traders that would gladly help them dispose of those holdings without dumping them on the exchanges.
I did not aware that Consensus weekend has such a big effect on the Bitcoin price. I see people saying we will see a big bull run after this weekend.
Let see what happens next week.
Lets hope we have a repeat of last year. A 20x rise from here would be pretty nice!
yes of cors
Like you said, the good news is that we at least know about this. Nevertheless, that is a damnn big amount of Bitcoin being sold. I hope that for this rough start of the year we get a great end to 2018 in return.
Not sure history repeats this year like it did end of 2017, but hopefully.
Will he do this until he sell off all of the BTC and BCH he has ? if so bitcoin won't rise for a very long time :(
Not sure. Last I heard/read he wasn't supposed to be selling any more until September. Not sure what exactly has changed. If he does sell it OTC it likely has much less of an impact than if he were to dump it on the exchanges taking out the order books.
Great news sir .thanks for share
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I am eagrly waiting to see conference effecs!