Bitcoin could see new lows at the end of August due to the Mt. Gox case
Eight years after the theft of 850,000 bitcoins (BTC) from users of the Mt. Gox exchange, some of those affected will receive compensation. Although the exact date was not communicated, those in charge of the case announced that 141,686 BTC will be refunded from the end of August.
Such a situation has aroused fear in the ecosystem. Precisely because if those compensated for the hacking of Mt. Gox decide to sell their bitcoins to take profits, the price of the cryptocurrency could fall. This possibility is on the table, considering that there has been no strong demand these days to compensate.
On -chain analyst and trader Juan Rodríguez said that the bad news is that the price cushion generated for bitcoin in previous days has noticeably diminished ahead of the possible Mt. Gox sell-off. He indicated that this largely enables new lows for the cryptocurrency and that “we are back in the best buy zone.”
Likewise, the analyst Healthy Pockets had estimated it two months ago when it was announced that the reimbursement would begin at the end of August. For the expert, the possible sale of this immense amount of bitcoins could have «serious consequences» for the price of the cryptocurrency, as reported by CriptoNoticias.
Although there are those who speculate that the reimbursement to users of Mt. Gox has already begun and that is why we saw bitcoin fall in price recently. The trader SantinoCripto expressed in this regard: «I would not be surprised if this fall of the last 7-10 days in bitcoin was the work of Mt. Gox».The bitcoin price last week saw a drop to the $21,000 level, its lowest in two months. Source: TradingView.
The specialist pointed out that the reimbursement and sales may be taking place progressively so that the market absorbs them and there is no drastic price reduction. «It suits them,» he maintained.
Traders would be selling in anticipation of the collapse that Mt. Gox would generate
Others in the community think that the recent drop in bitcoin was due to selling ahead of the potential crash of Mt. Gox. This theory would explain why the cryptocurrency dropped from $25,000 to the $21,000 level in recent days.
The enthusiastic EraDelBitcoin expressed himself about this, commenting that the potential sales of BTC from Mt. Gox represent bad news for the market. He understands that this is why traders come to sell now, anticipating that scenario. “The market is usually like this, the falls usually happen before the expected events occur,” he summarized.
However, not everyone sees this as a bad thing for the market. Just as Juan Rodríguez considered it, the enthusiast and trader TheDustyBC highlighted that it could be a buying opportunity. He even alleges that this may be why large investment firms such as Blackrock have recently started offering bitcoin to their clients.
“140,000 BTC could potentially be dumped (continued sales below its cost price) on the market by the end of the month. (This is because the launch of Mt. Gox was scheduled a long time ago.) Blackrock has entered the space and offers bitcoin, buying opportunities, for clients this very month,” the enthusiast concluded, questioning whether it was a coincidence.