Sell Pressure From 150K Mt.Gox BTC Could Tank Bitcoin Over 90%, Crypto Analyst Says

Sell Pressure From 150K Mt.Gox BTC Could Tank Bitcoin Over 90%, Crypto Analyst Says

The potential sell pressure from 150,000 Bitcoins released to Mt. Gox creditors could be cataclysmic for Bitcoin BTC/USD according to some market analysts.

What Happened: According to Nov. 16 notice from the Mt. Gox Trustee Nobuaki Kobayashi, the rehabilitation plan to disburse 150,000 BTC worth $8.5 billion is now “final and binding.”

The rehabilitation plan was first put into motion in 2018 with the intention to compensate creditors of the now-defunct Japanese crypto exchange Mt. Gox that lost 850,000 BTC in one of the largest hacks in crypto history.

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At the time of the hack in 2011, 850,000 BTC was worth $460 million. That same amount is now worth over $50 billion.

With 150,000 BTC due to be released to creditors, some crypto analysts foresee a massive price in the cards for Bitcoin.

 

According to Mr. Whale, Bitcoin could tank over 80%-90% if the creditors sold the BTC paid out as compensation.

“The last time they held BTC, it was $100-$1000. They will undoubtedly sell, which will trigger a major crash,” he said. “Them selling it would cause a huge drop, similar to March 2020. Then all the retail will panic, and sell, which will cause it to drop even more. Will be very bloody. No way to spin this into a bullish event."

Other industry watchers like Lark Davis believe Bitcoin’s daily trading volume can “easily absorb” a few billion dollars worth of sell pressure spread out over a few months.

 

Price Action: At press time, Bitcoin was trading at $59,500, up 0.54% in the last 24 hours. The leading digital asset had a daily trading volume of $41 billion.

Photo: Maxim Hopman on Unsplash

Posted In: Mt. GoxCryptocurrencyNewsMarkets

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