Are Bitcoin Investors Worried About Mt Gox Trustee Selling 140k Bitcoins?

5 mo
LeoFinance
5 Min Read
1026 words

btc.jpg

December 2021 was suppose to be big for Bitcoin price, they said. Whoever I read or listened offered very optimistic predictions like bitcoin will go to 100k, 200k, or even 400k. I like optimism and often reasons and explanations provided do make sense. I prefer to lean to more conservative predictions though. 100k sounds reasonable. Why not?

2021 is gone. We are in 2022, bitcoin price continues going down. I am not really worried about its price. I am happy if it goes down, and happy if it goes up. If it goes down significantly, I see it as a buying opportunity. If it goes up significantly, I can finally take some profits. I have concluded for myself that bitcoin price always goes back to its previous highs given enough time. So I am not too worried about bitcoin prices going down.

This wasn't the case a year ago. I was prepared to sell at around $16k price. Tuck and friends convinced me to wait until 20k. Which ended up happening and at that point I couldn't sell because price kept going up 1k a day if not more. Since then I believe I have learned more to have a conviction that bitcoin is unstoppable and has a bright future.

In November of 2021 Mt Gox and its bitcoins in trustee appeared in the news again. Last time I have heard of Mt Gox was back in 2018 during the bear market. While there can be many reasons or combination of reasons that may have caused the bitcoin and crypto bear market last time, I tend to believe the major cause was the Mt Gox Trustee selling about 36k bitcoin and 34k bitcoin cash. I have heard other reasons like bitcoin price went too high too fast, it peaked, CME futures, ICO crack down, Bitmain problems, over-leveraged trading, etc.

But the one still makes more sense to me is that Mt Gox Trustee selling massive amount of bitcoins in a very short period of time. I like simplicity. Supply and demand is simple to understand. If there is too much of a supply all of the sudden and not enough demand, prices will probably go down. But also, the fear of this happening for a prolonged period of time may keep the demand away as well. At that time Mt Gox only sold some of the bitcoins in their possession, they still had 160k more to sell. Anyway bear market was long but it did came to an end and we had a great bull run. Mt Gox and their bitcoins were long forgotten.

They did come back in the news again in October, when there was a notice issued with an announcement that Draft Rehabilitation Plan was filed and approved by a large majority of creditors. Then in November 16, 2021 the Trustee announced the Notice of Confirmation Order of Rehabilitation Plan becoming Final and Binding, that described the plans of repayments to creditors. Many new sites published articles about this at that time. I haven't seen any other news about Mt Gox since then.

But the bitcoin price kept going down since then. Coincidentally, the price of bitcoin dropped below 50 SMA on a daily chart on November 17 and stayed below 50 SMA ever since. I do find it interesting, just because I used 50 SMA a lot. As the price kept going down, there were many different explanations given by various podcaster, influencers, so called bitcoin experts. Some even explained on-chain activities, hash-rates, etc. But none of them really mentioned Mt Gox or an investor fear that Mt Gox is going to sell a lot of bitcoins. My question is, is/was there investor fear of another bear market caused by Mt Gox Trustee?

I don't know if Mt Gox even started selling yet or not. I tried to find some sources that would track wallets of Mt Gox Trustee bitcoins and the wallet activity. The one I found was updated last summer, and couldn't provide any new information. But we do know that they have or had about 141k bitcoins and some bitcoin cash to sell.

Reading the Mt Gox Trustee notice from November 17, 2021, it says:

An announcement will be made to rehabilitation creditors on the details of the specific timing, procedures, and amount of such repayments.

It is not clear if this announcement of details will be a public one or in private to creditors. It is also not clear if this announcement would be before or after the assets are liquidated. I would assume they wouldn't want to announce when, how, and how much they will be selling. Because that would go against the interest of their creditors and may cause prices go down a lot and fast.

But it does look like they the Trustee will sell bitcoins and distribute the funds in fiat, instead of distributing bitcoins to their creditors. They ask for creditors to register their bank accounts.

The Rehabilitation Trustee will request all the rehabilitation creditors to register their bank account information and other information on MtGox’s Online filing system (online system) (“the System”) in order for them to receive repayments

I am glad people who lost their funds when the hack happened will finally receive some kind of compensation. I just hope this won't start another extended bear market. Bear markets are boring. lol

Of course, this time around there is bigger interest for bitcoin. It is not only retail investors who have been buying bitcoin, many companies, institutions have shown interest and have been buying up. These are different times. The question is, are there enough buyers in the market for 140k+ bitcoins to make this liquidation process go smooth without driving prices too low?

We have seen investors like Michael Saylor and countries like El Salvador have been very vocal about buying more and more bitcoins as prices keep going down. Maybe there are many more who are doing the same without announcing their trades publicly. Time will tell.

What do you think? Should we be worried about Mt Gox Trustee selling all of their bitcoins?

Posted Using LeoFinance Beta


5 mo

The question is, will they ever release the coins?

I mean it's been around for such a long time. I would expect we don't see any token paid out in 2022.

2

My understanding is they will sell the coins and then distribute the fiat.

1

BTC is just like the head of all crypto coin out. I guess the fallen price is like an advantage to many investors and it's literally affecting other coins cause of it huge impact on them. I still believe it will go up high of course the year has just began so lets watch out for it.

1

I believe it will keep going higher too. One can hope. :)

0

Nah, I don't think that's really an issue or something relevant to the BTC price. I also remember the news about Mt Gox in 2018, just like the absurd amount of times China has banned cryptos in their country. I feel that most of these articles are just for media purposes so that supposed crypto o experts have what to base their analysis on.

Anyway, let's hope a rather prolonged bear market doesn't come, just like you, I feel they are very boring XD

1

Except we don't hear much about Mt Gox yet. That's my point. They will come out with news that they sold them after the fact, like they did last time around.

0

If they are going to sell the Bitcoins and pay the holders who lost money in the hack then I guess a short term downside is perfect for the community.

5

That is a good point. Overall there is a positive outcome.

0

It is no new thing that there will be inflation and deflation of price while in the crypto world but it's definitely what we will experience while involve in it because there is no specific day or time that it will tell you that it's going to rise or fall but our hope and aim is to see it pump in price with a better progress.

1

I didn't quite understand, but sounds interesting. :)

0

I don't think it will be that big of an issue. After all if we give it a few days, we will get the weak hands to drop and we all know people like Saylor will continue to buy more BTC no matter the price. So the dip only seems to be short-term.

Posted Using LeoFinance Beta

1

That's true, but Saylor already spent all he had. He is buying in small amounts now. Maybe you are right, there are more like him who are buying secretly.

1

Not at all, well at least for me if it can temporarily dump the price 30-50% I’m all for it, yummy yummy sats

1

Can't say no to Sats.

0

Interesting read. I haven't heard anything about Mt. Gox in a long time. I didn't realize that that whole thing was still going on. It's great that people are going to get some of their BTC back. I don't know how it will effect prices though.

1

On January 3, 2009, the first block and the first 50 bitcoins were generated.
A little time has passed since then, and bitcoin has spread all over the world, its capitalization is colossal. I believe in bitcoin.

1

I do too.

1

Not a bad one if bitcoin still go deeper for more Bitcoin to be acquired by intending Investors

1

I guess more bitcoins sold, more distributed it will get.

0

Bring on the cheap sats!

1

If you are buying, I am not worried then. :)

2

Haha! I doubt my measly amount of buys will move the market but I'll happily take some of that 140k of their hands

0

Bitcoin price is so unstable. It's a coin so no one should expect it price to be static. It rises today, tomorrow it falls.

The good part of cryptocurrency is having enough for transaction. When the price goes up, u take profit and when it's down, u buy..... It's all about business

1

Sounds reasonable. Buy low, sell high. Repeat. Brilliant!

0

That's all about business. making profit and saving for the future is what makes business interesting.

1

There are various strategies the trustees could use to minimise the impact on the headline price. Its a lot of Bitcoins to sell but if they are smart about it they won't tank the market.

2

Yes I have heard Michael Saylor saying they were able to buy large amounts of bitcoin without moving the price at all. Not sure if same is possible for selling though. It should be.

0

Well, this perspective is good.

0

ikr, thank you.

0

I have been saying for about a year that the market should peak in summer of 2022. The very simple explanation for this is that every peak has come later than the last one. Winter 2021-2 is simply too soon. But I get things wrong as well, so there's that ;)

1

Interesting. I hope you are right its too soon, and I hope you are wrong about summer 2022 peak. lol

1

well it has to peak eventually :P

image.png

You can see the amount of days since the halving and the peak which have lengthened

1

I don't think it's going to hurt the price any. There are enough whales in the market now, and hoders in general, that it shouldn't be that big a deal.

1

What makes you think there are enough whales to buy? 140k coins is a lot.

1

I always consider Bitcoin's price as an indicator of the masses' opinion on crypto as a whole, since some consider it to be more or less an equivalent of real-life gold - no direct use but valuable.
But honestly, it doesn't concern me in the slightest if it goes down. I think it's overpriced as is and needs some kind of correction. BTC had been on an uptrend for quite some time and by comparing it to other cryptocurrencies, one would realize how inefficient and useless it is.
Just comparing the opportunities $1K worth of BTC would give you to the usefulness of $1K worth of Hive, for example, would raise the question: why is it even traded at this point?? Illegal stuff/Traders' influence would be my guess.

Then again, I'm just a dev who sees more potential in a coin such as Hive than Bitcoin...

1

Yea but crypto doesn't follow logic. :)

1

Yea, unfortunately, that's what is happening these days. I really hope people would look deeper in the "tech" side of crypto rather than the "trading" one...

1

Maybe a short dump is possible. But the Mt. Gox news has been an issue for quite some time now. I don't think they have the resources to pay all their users. But even if they do, we are in the stage where institutions are buying large sums of crypto & where El salvador & Michael Saylor keep announcing they bought BTC when there's a dump. Just my two sats

1

They have 140k btc, which is a lot. Saylor and Salvador already heavily invested in btc, I doubt they have enough fiat to buy a lot more. But maybe there are other hidden bigger players.

1
5 mo

Isn't it beautiful? It can only go up or down.. and yet.. it is so complex...
I'm not worried about MtGox selling... for me it would be great to see a drop in Bitcoin price .. and as you concluded that bitcoin price always goes back to its previous highs given enough time, then all is fine... ;)

0

Going up or down is fun, but when it goes sideways it gets boring.

0
5 mo

I agree... it is also a sign of stability and market maturity... which attracts more institutional investments. Just boring... but there is all the alt coins for excitement and losing ;)

1

I think they are hiding forces behind the movement of Bitcoin , according to prediction on last year Bitcoin shouldn't have go down in price because of harsh rate or so ,but negative is the case ,even if Bitcoin did not get to 100k it should get close to the price but not going down to 46k

0