During the past days, Bitcoin and the cryptocurrency market in general, experienced a drop in their value. There were some FUD campaigns out there trying to increase the sell off, but the reality may be slightly different. Some analyst believe that the markets were operating in red due to the fact that an Mt. Gox trustee sold almost 40,000 bitcoins.
Mt. Gox Sell Off Paused Until September
Most of us know what happened to Mt. Gox, but for those that do not know, Mt. Gox was one of the most important cryptocurrency exchanges in the world that got hacked in 2013/2014. It was managing 70% of the Bitcoin transactions worldwide. In 2014, the company announced that they lost 850,000 Bitcoin.
There are still some creditors that are searching the missing money. And according to an Mt. Gox report, Nobuaki Kobayashi, lawyer and trustee of Mt. Gox, sold 35,841 Bitcoin and over 34,000 Bitcoin Cash, starting in September of the last year.
For several experts and analysts, the volatility that the cryptocurrency market suffered, can be explained by these sell off of Bitcoin by the Mt. Gox trustee. Besides that, he currently holds around 165,000 Bitcoin.
At the moment, the next court proceeding for Mt. Gox is not scheduled until September the 18th, 2018. Before that date, Mr Kobayashi would not be able to sell the remaining Bitcoins. That may lead to a reduction of volatility in the markets, at least until September.
The details of Kobayashi transactions have been published some days ago, and may suggest a correlation between Bitcoin price drops and Bitcoin sales. The date of the sales range from late December to early 2018. Other bearish events in the cryptocurrency market helped the price go down even further.
During the next six months, Kobayashi would not be able to sell more Bitcoins to the market, creating volatility and sudden price drops. But there are some others that believe that Kobayashi will be able to keep selling the coins he has. Even when he would be able to do it, we now have better information about what is going on.
Image: Wikipedia and Japan Times