Reports have emerged that the Mt. Gox bankruptcy trustee, Nobuaki Kobayashi is gearing up for another round of bitcoin selling. According to Blockchain.info, 8,200 BTC was moved from the fund’s cold wallet. In response, the price of bitcoin has dropped below $9,000 over fears the coins may be sold on the online exchange market and not on OTC platforms.
Bitcoin Falls Below $9,000 in the Wake of Latest Mt. Gox Selloff
Bitcoin has been on a high over the last three weeks. From having its first consecutive weekly gains, the number one crypto appeared to be on the resurgence. In the last few days, negative comments from Bill Gates, Warren Buffett, and now reports of another substantial Mt. Gox selloff seems to be affecting the bitcoin price. The transfers are reported to have occurred in the early hours of May 10.
Several crypto monitors are accusing the Mt. Gox trustee of dumping the coins on the exchange market. These reports are still unconfirmed, but some commentators say it is a way of shorting the market. According to Cryptoground, the Mt. Gox bankruptcy trust still has a balance of 137, 891 BTC. Cryptoground is a website that monitors the cold wallet of the defunct platform’s bankruptcy trust. Kobayashi earlier said that he planned to sell the remaining Mt. Gox crypto holdings over the coming months.
Someone please tell the drunk Mt. Gox trustee person to stop using cryptocurrency exchanges and move to the over-the-counter market.
— Joseph Young (@iamjosephyoung) May 11, 2018
Charting the Effect of Past Selloffs on Bitcoin Prices
In March 2018, Kobayashi denied that his sale of $400 million in Bitcoin and Bitcoin Cash caused the prices to crash. Bitcoin rose in value in late 2017 almost eclipsing the $20,000 in mid-December. By the start of February 2018, the crypto had plunged to below $6,000. Many were quick to point fingers at the trustee who in his defense said sales took place on OTC avenues.
Nevertheless, many argued that OTC buyers could immediately dump bitcoin on online exchanges, inducing panic and causing the price to plummet. Indeed, careful examination of some online exchanges shows a spike in bitcoin sell orders in the immediate aftermath of Mt. Gox selloffs. There is no denying the fact that significant price corrections have occurred in the wake of all Mt. Gox selloffs.
Mt. Gox was once the most prominent Bitcoin exchange until it filed for bankruptcy in 2014 after suffering a series of hacks.
Do you think the Mt. Gox selloffs are affecting the bitcoin price? Let us know in the comment section below.
Images courtesy of Cryptoground, Wikimedia Commons