Could there be a light at the end of the tunnel?
This past week it was revealed that the trustee for the Mt. Gox bankruptcy case had been selling bitcoin and bitcoin cash holdings to raise funds for defrauded investors.
The amount sold thus far was said to be roughly 40,000 bitcoins, which was worth just over $400 million. ($405 million to be exact)
That dollar amount is important and I will touch on that a little more later on.
How it was done:
For now, here is chart put together by a user on Reddit detailing the sells made by the Mt. Gox bankruptcy trustee from the roughly 200,000 bitcoins they were able to recover:
(Source:~~~ embed:CryptoCurrency/comments/82ryay/ive_mapped_the_exact_time_when_money_was/) reddit metadata:fENyeXB0b0N1cnJlbmN5fGh0dHBzOi8vd3d3LnJlZGRpdC5jb20vci9DcnlwdG9DdXJyZW5jeS9jb21tZW50cy84MnJ5YXkvaXZlX21hcHBlZF90aGVfZXhhY3RfdGltZV93aGVuX21vbmV5X3dhcy8pfA== ~~~
As you can see, in many cases the selling by the trustee happened just before large drops in the price of bitcoin.
One might question how the selling of 6k-8k bitcoins, which is less than 1% of the trading float, could cause the entire market to tank...
The problem appears to be that they were sold all at once and they were sold on a single exchange, which would have been able to knock prices down on that exchange and cause selling pressure across other exchanges, triggering stop losses etc.
What is more, the trustee has "only " sold about 40,000. Which means he still has another 165,000 bitcoins that could possibly be dumped as well.
This fear of more dumping is part of what helped drive prices to those lows seen the last few days.
Remember that part about the amount sold thus far totaling roughly $405 million?
Here is why that is significant...
According to the bankruptcy filing, Mt Gox creditors were owed roughly $391 million USD.
Which means, it is very possible that the amount of $405 million that has already been sold would be more than enough to cover the USD portion that was owed to creditors.
What's more, there hasn't been any more selling from the bankruptcy trustee for over a month with the last sell taking place on February 5th.
Which means... it is possible that no more bitcoin will be dumped by the trustee any time soon.
It also appears I might not be the only one who thinks that...
Check out the comment from Tom Lee at the 4:18 mark on Fast Money last night.
It appears he is also hearing that the selling from the trustee might mostly be over, if not already over.
I don't know about you, but that is welcome news to me.
Stay informed my friends.
Follow me: @jrcornel
I think this is very bullish news. Why? Because most of that money will likely flow back into cryptos once the Trustee start distributing the fiat back to the victims.
Remember, those people watched bitcoin hit 19k while their coins were under the control of the Trustee!!
That is a very good point. I am not sure when that money will get distributed back. If I had to guess I would say it will take some time though.
I agree it could be bullish news, but for the longer term, because as jrcornel said it will take a while for it to happen.
Yeah @techwizardry you make a good point that Fiat money will land up coming back into the market at some point.
@jrcornel I read that he wont be able to sell anymore and the court case in Sept.... might be good idea to put that in our dairy as there could be some more sell off at that point...
Good comments and keep us informed. Steem On!
thanks for sharing! this week is quite crazy...
Market cap 5 quadrillion but cash in $50 and it loses 25% value kind of thing. The problem is that exchanges follow lower values easier than they follow higher ones just like what is happening with poloniex/steem right now.
That makes a lot of sense, I hope the trustee is now a full on hodler!
The FUD caused by the sell off was really big but I think the market will hopefully recover in a week!
Thanks @jrcornel for sharing this important news of Mt.Gox selling, hope that they wont sell anytime soon, it is profitable for them to sell at small intervals rather then selling all at once.
This would be very welcome news and I hope it's true. Bitcoin has been getting slammed, so if this trustee stops dumping the coins onto the market in a disorderly way that would really help. This person doesn't seem to know how to properly unwind a large position. It would be great if he has raised the money he needs in the immediate term to satisfy creditors and can sell of the remaining assets in an orderly way that does not disrupt the market and damage the value of his assets. He has a fiduciary duty to maximize the value of the assets in his care, and dumping them on the market is not the proper way to fulfill that duty.
i think so too
the price of steem decrease bcz of btc exchange can they change exchange of steem with other
Thanks for keeping us updated
i dont think most of the Cryptos will reach the value they had in dec2017 again.....people have started losing interest again well most of people right now who are holding CryptoCurrencies right now are new people who have seen alot of growth in market and bought and after seeing whats happening right now this people are getting desperate for selling their Cryptos.
I really do not think the Crypto Market can be stable for at least next 4-5 months sad thing but i think thats exactly whats going to happen hence rather than selling now holding would b a better option
I think you are right..The highs we saw were speculators...I think the public have been scared off..I've bought crypto's that have some use as apposed to just another currency. My crypto's are aimed at emerging markets in Africa and South America..A place where crytpo really has a good chance of expansion..I'm not selling any of mine...It's gonna be a long haul...
Hehe, nice video, time to HODL!
Good post man, very enlightening!
The sooner we get over the MT Gox issues the better. Same goes for API issues, hacks and so on. Eventually we'll get better protection and more use of DEX's. People need to understand that what's been happening for the past 3-4 months is all market manipulation; the fundamentals are the same, if not better so the price isn't going down for that reason.
good info, thanks for post friend.
I was wondering who the clown was dumping Bitcoin on the market. Glad to hear it may soon be over and perhaps things might get back to normal...for a day or two at least!
JR, totally agree with you here. I posted a similar article last night that under Japanese law only the $487 million in USD need to be returned.
We'll see whether or not the remaining bitcoins go to the crook Karpeles for Mt. Gox into the ground
https://steemit.com/bitcoin/@lordprime/becoming-more-bullish-on-crypto-doubt-there-will-be-much-more-selling-from-the-mt-gox-trustee
This quote from an article on Coindesk, from the seller himself:
"According to Kobayashi's report, additional liquidations could be coming, pending approval from the bankruptcy court.
"I plan to consult with the court and determine further sale of BTC and BCC," he wrote."
Outsch!
Maybe they wait BTC going up again a little and sell again.
Yes, exactly what I was thinking...The courts have yet to decide if BCC has a huge debt to address. All of the BCC (aka BTC-holders) may be forced to dump their coins in a settlement. All of this only encourages FUD among people who are in for a quick 'gain'.
Thanks for the extra info.
Peace.
If this is the case, it is indeed good news. Otherwise, I will be guessing the bottom. Hopefully the prices will go to the moon from here.
If all the victims are compensated than who will own the other 160.000 bitcoin?
I'm interested to see what is around the corner with these SEC rulings. I believe that the ICOs that are under investigation will be dumping their ETH and BTC holdings onto the market soon. As we all know there is never just one or two things that happen at once, they like to throw a who mess of problems at once!
I think we will see cheap Bitcoin very soon!
I feel dizzy, because I think you're right.
We found buyers at $8400, but until we take out 2 stacks of sell orders, in this case at $9350 and $10000, Bitcoin will not go higher.
sadly just when the first one broke it was rejected, I am a bit afraid of a double top now at ~9500$
On the daily chart, we are range bound only...If we break $8400, that will confirm the downtrend.
thanks for the post, the information in it is very good. By posting you our readers can find out about the bankruptcy of Mt.Gox and why it can happen.
in the next few days it depends on whether bitcoin can keep to the 10.000$ limit or not
Nice Post!
waiting for greater value!
That would be a great relief for me and the entire crypto community. I'm getting tired of the FUD situations already. Bitcoin should continue it's journey with a few roadblocks ahead and not every time.
well information for all steemit user...it was helpfull post..
thanks for share...
Thanks for keeping us updated anyways we hope there is finally some light at the end of tunnel. We could just pray that the clouds moving over crypto market disperse away..
Good information. I bet the creditors would rather have been paid back in bitcoin to avoid capital gains being triggered.
The Government/Juristiction surely wouldn't accept the payments to be in Bitcoin.
This is good news if no more Bitcoin is dumped by the trustee
This is indeed a helpful post to all steemians.
well information in bitcoin keep it up ....... thanks for shareing
Sometimes i think the faster they dump all they have the better. Massive hoding of bitcoin are real threat. Why so many people are afraid of ripple? Because its creator own too much. But in the case of ripple we know who owns this large stack. They can't really sell it to dump the price. Otherwise a lot of people can loose too much and among them would be a crazy person with the gun. In case of bitcoin the top 10 wallets doesn't hold that much, but enough to pretty much destroy bitcoin anyway. What we actually know about their real owners? Could they dump and go into shadows? I hope new investors won't know it or they will think twice before injecting new money into the market that can be manipulated so easily.
I really do hope that's the end of it for now. I wouldn't care that much if it was just Bitcoin going down. Sadly altcoins are dragged down too due to Bitcoin being a base currency.
At least it's cheap to power up at the moment, but now Blocktrades is down...
I really hope that after paying back their dept the 14 million dollars (405-391) will be enough spending money for the trustees for a while :)
Mt.Gox has is very fishy and it seems majority of people there are fraud and greedy. They must have kept a lot of BTC when they filed bankruptcy.
@jrcornel thanks you for this post, but i think the same like julian hosp (co founder from tenX), that the btc price will fall under 5k, then it starts rising because the really big investors dont want to miss a chance like this!
I can't wait for ALTS to stop following BTC... Im hoping that once big exchanges start adding USD trading pairs that we will start to see some really shine on their own regardless of what BTC is doing. He should sell them more spread out.... although maybe this is good, it seems like with every dip in the market since Mid January I care less and less. Maybe it will make me stronger in the long run so I can do what I plan to do for years anyways (hold) :)
I heard that Mark K. has 180K BTC...now 160K...I think they want everybody to sell at 2-3K...
If there's one thing grandpappy taught me it's Hodlers gonna hodl.
Ah neat, so if this is true I hope it gets more publicity because it would explain a lot.
I was hoping it was something like this, or those damn vinklevoss twins.
Nice one! Hope the sell of is done, but i assume it must be , since the debt has been paid off
Whether it was the mount Gox sell off or just whales getting out makes no difference. Its manipulation and bitcoin will always be open to that, especially while still comparitively small..I think people buying bitcoin to make quick money will be disappointed. There are still opportunities, especially in emerging economies for tokens that add something of value. I like the look of the pillar project..