Bitcoin Drops to $8,300 as Mt. Gox Trustee Sell Off Continues, Market Drops

https://www.yahoo.com/finance/news/bitcoin-drops-8-300-mt-072044489.html

Yesterday, on March 9, CCN reported that the sell off of hundreds of millions of dollars, and the plan of the trustee to dump the remaining $1.7 billion worth of bitcoin into the market have caused the price of bitcoin to drop substantially in a short period of time.Since March 7, within a 48-hour span, the price of bitcoin decreased from $10,600 to $8,300, recording a staggering $2,300 drop in value. The entire market followed bitcoin's price trend, as the three largest cryptocurrencies behind bitcoin in Ethereum, Bitcoin Cash, and Ripple all declined by 11 percent, by the same exact margin as bitcoin. Analysts like WhalePanda have attributed to the recent fall to the massive sell off of bitcoin by the Mt. Gox trustee, and the controversial decision of the trustee to sell 40,000 bitcoin on a cryptocurrency exchange, rather than over-the-counter (OTC) platforms.

"MtGox was terrible and the incompetent way they are handling is terrible, saying that Bitcoin has been crashing since all-time high because of it is just silly. It's only' 40,000 BTC. It is about the same as claiming that Tether caused the run to $20k. People love their narratives though," said WhalePanda.

However, the sale of 40,000 bitcoin is not the end of the Mt. Gox trustee's sell off of bitcoin. According to the official document released by the Mt. Gox trustee, more than $1.7 billion worth of bitcoin is expected to be sold in the next few months.

The official document of the Mt. Gox trustee referring to Bitcoin Cash as BCC read:

"As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above. I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of sale. I plan to consult with the court and determine further sale of BTC and BCC."

$1.7 Billion If the Mt. Gox trustee continues to dump large amounts of bitcoin on cryptocurrency exchanges rather than in the OTC market wherein big buyers can trade with each other, the price of bitcoin will continue to be affected by the sale.

Ethereum co-founder and Cardano founder Charles Hoskinson stated that bitcoin may have been overvalued at $19,000 if a short-term sell off by a single entity could lead the price of the cryptocurrency to fall by a margin like this, emphasizing the liquidity problem in the cryptocurrency market.

"Was bitcoin really worth $20,000 a coin if an event like this has such a profound impact on the market? We need an index of how much the market can afford to liquidate without crashing for each cryptocurrency; call it the ΔL metric," said Hoskinson.

It remains unclear whether the Mt. Gox trustee will dump over a billion dollars worth of bitcoin on exchanges as planned, or move to OTC market to prevent market manipulation.


Comments


[53 Points] apapastavrou:

fuck mt gox they steal your money in 2014 and shit on you again in 2018


[28 Points] RightWingPrankSquads:

This is really fucking bleak. This motherfucker owns about 15% of the total BTC in circulation and anything over $400 is a profit to him. He could dump all at once and become an instant billionaire which would put BTC at lows we haven't seen in years. Or he could shit all over every attempted bull run that occurs and stagnate BTC to the point that people abandon it. The other major coins need a divorce from BTC. I'm looking at you, Monero.


[4 Points] abu7:

controversial decision of the trustee to sell 40,000 bitcoin on a cryptocurrency exchange, rather than over-the-counter (OTC) platforms.

OTC Platforms?


[2 Points] identicalBadger:

Whale pandas quote seems the most reasonable here.

The problem, now, is that while the sale could move the market somewhat, the publicity saying it WILL crash the market is causing buyers to wait til the sell off is done, which is of course making the sales have a much larger impact on the market.

But seriously - is everyone here done buying? Because these are buying opportunities that are being created. Sure, sucks if you had a event you wanted to sell for, but other than that, it’s a second chance.


[2 Points] MarcBago:

Muh narrative!


[2 Points] MeatyJay:

At this point, I personally don't see "crypto" taking over. Simply because of GREED. People's lives change over night, Fat Greedy Cunts pump it with their millions, thousands of people start investing in hopes of success, Fat Piggies "Cashout" their jillions of dollars, destroy the market, cause panic and hate towards crypto. This is the same pattern that has been happening forever. The reason the dollar/currency, has stayed the same because it was regulated. Yes, the point of crypto is to be decentralized bla bla bla, but when they start taxing, looking into accounts to see whose money we can tax, that's when it WILL FAIL. In the end greed corrupts all things good. $1 will stay $1, BTC/Crypto on the other hand will be $10 one day and $0 the next. Sadly it won't be implimented worldwide.


[1 Points] uptokesforall:

A real test of the volume of transactions available. We want to move thousands of bitcoin, but the order book around the market price is only on the order of hundreds, at best. The price at 10900 was practically a support level for a bull run to 12k+. I think that the price is going to drop substantially, but many new hands, or hands which liquidaited at the start of this big selloff, will make large return on cash invested shortly.

I' m doing an ACH transaction now.


[1 Points] seeingeyepyramid:

Y'all are morons if you are still doing business in BTC. Did you really force your customers to pay $30 fees in December? It can and will happen again.

Switch to Zcash, Dash or Monero already. Or maybe even ETH or BCH. Even cryptokitties make more sense than BTC at this point.


[1 Points] greenmachiner:

Good time to buy more


[0 Points] Kritone:

But how mtgox have bitcoins? They was not hacked and lost all?


[0 Points] DNrick_sanchez:

BUY THE FUCKING DIP


[-2 Points] whitechillin:

I have inside info u don’t obviously but ya. There’s certain organizations that will assure its down fall. First off u gotta be a twit to buy digital currency 😂😂 go ahead spend ur money on it 😭