The past few days saw Bitcoin and the rest of the crypto market experience a significant drop in value. While this seems to have changed as of today as most cryptos are in the green, here is the one reason Bitcoin price is likely to skyrocket in the coming days.
Last week, the Mt. Gox trustee Nobuaki Kobayashi revealed he had sold almost 35, 841 BTC and 34, 008 BCH to raise money to refund the investors of the defunct Mt. Gox exchange. This massive sell-off has been cited by analysts as the reason Bitcoin price and that of other cryptos had dipped.
Many keen observers of the market have partly blamed Kobayashi, claiming the influx of Bitcoin has been the key contributor to the intense volatility experienced in the market recently and also in the month of December 2017 and January 2018.
The details of the trustee’s transactions were published last week and a deep analysis of the transactions gave an interesting revelation. There was a direct correlation between the sale of the coins and the bearish Bitcoin price in late December of 2017 and early 2018.
The problem with offloading a large number of cryptocurrencies is that the seller has to accept lower and lower bids and this can cause the price to drop rapidly. Keen traders observing the market closely may see this as a sign of an oncoming crash and rush to sell off their assets before the price drops further. A domino effect can take place and the market can quickly experience a crash.
But there is every reason to be hopefully in the coming days. With the next court proceeding of the Mt. Gox bankruptcy case set to take place on 18th September 2018, it’s highly unlikely that Kobayashi will have the ability to dump the remaining Bitcoins in the open market. This is the one reason Bitcoin price is set to skyrocket in the near future.
The trustee still is in possession of 166, 000 Bitcoins that are worth over $1.5 Billion at the moment. Even if – in worst case scenario doesn’t require a court order to go on with the next sale, we can only hope there will be transparency with future sales as this will help mitigate FUD that can quickly take over the crypto market.
Tell us if there is any other reason Bitcoin price will skyrocket in the near future. We would love to hear your opinions in the comment section below.