The price of Bitcoin will probably increase, the Exchange Mt Gox, will have a pause until September of this year.
As is known, in recent days, Bitcoin experienced a large drop in value. The entire market has followed this downward trend, such as: Ethereum, Bitcoin Cash and Ripple decreasing in similar margins. Analysts have attributed the recent fall to a massive sale of nearly 40,000 Bitcoin by the Exchange Mt Gox. Gox Trustee.
It is reported that sales of bitcoin by Gox sell-off, are paralyzed until September. The Tokyo-based cryptocurrency exchange, Mt. Gox, was formed in 2010, and only four years later was responsible for more than 70% of all Bitcoin transactions worldwide. Unfortunately, in 2014, the exchange closed and went bankrupt following the theft of approximately 850,000 Bitcoin.
The problem today is that the creditors are still searching or claiming the lost money. And it has been reported that Nobuaki Kobayashi, the lawyer and trustee of Mt. Gox, has sold 35,841 Bitcoin and 34,008 in Bitcoin cash, worth more than $ 400 million, in recent months, the sale began in September of the year past.
Many in the industry have cast shadows or bad comments, towards Kobayashi, claiming that this influx or massive sale of Bitcoin contributed to the intense volatility in the market in December and January, as well as to the downward trends of the most recent prices. Mt Gox, or its Exchange trust holders, still owns around 166,000 Bitcoin, for a current value of more than $ 1.5 billion.
This has attracted a lot of attention, but there may be some good news: the next judicial process for Mt Gox. As for the liquidation process of the bankruptcy of Gox is not scheduled until September 18, 2018. It is likely, then, that before that date, Kobayashi can not download the remaining 166,000 Bitcoin in the open market. Traders have been watching this case closely, and if this turns out to be true, it could mean good things for the price of Bitcoin.
What happened?. The details of Kobayashi’s transactions published earlier this week indicate that the mass sale in large lots was potentially a driving force behind the fall in Bitcoin prices in December 2017 and January 2018. Transaction analysis suggests a correlation between Bitcoin’s sales and price action towards the end of December 2017 and the beginning of 2018. Sales seem to have shaken even more a market that is already in a downward trend after regulatory repressions, pirated exchanges and fraud.
In this sense, when a large volume of cryptocurrencies is unloaded, the seller is required to accept lower offers as they are sold, which in turn causes the price to fall rapidly. Some traders who closely observe the market can see this as a sign of an impending downfall and try to sell their holdings quickly before it falls further: a snowball effect can occur and a market can quickly experience a collapse. This is an almost universal rule in stock exchanges, there is a lot of volatility when volumes increase.
Now everything is moving forward. As noted above, many hope that with the next Mt. The lawyer for the liquidation of the Exchange, reported the following, “I have an appointment in court within six months, it is a prolonged time in distance”, Therefore, Kobayashi will not be able to throw another load of coins in the market. That said, some doubt: a Twitter user, a Japanese investor, claims that, in fact, the court hearing on September 18 is irrelevant because Kobayashi has already been authorized to sell, which means he does not have to wait for it to be cancel the opportunity and you can sell more crypto.
Therefore, regardless of the actions that Kobayashi carries out, we expect future sales to be more transparent and not contribute to the demise of the FUD and the associated Bitcoin market.
In summary the ecosystem of blockchain-bitcoin, is very volatile, investors, users and the public that seeks information to make a short-term investment, verifies various sources available in different media, those who perform daily trading are pending from the addresses of the big crypto holders, the smallest sale out of the normal information travels around the world and happens as expected, the holders of the crypto, as bitcoin start selling for fear of a run, this is a reaction in the world of investments and is what according to specialists has been happening with the price of bitcoin. It waits for new ads.
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.