Should the release of the remaining Mt Gox funds have a similar effect on the price of Bitcoin, it would likely drop below $10,000. This target is what I’ve been predicting for several months now, and I am more confident than ever that it will hit. However, this isn’t the only thing confirming this crash below 10K, even in recent months, there has been equal sell pressure on Bitcoin from parties such as Luna Foundation Guard, Three Arrows Capital, and Bitcoin miners.
LFG sold several billion dollars worth of Bitcoin, which had a negligible effect on Bitcoin as the market absorbed the selling pressure. The following weeks since the event did result in Bitcoin’s price decline due to a change in market belief and overall global outlook. The markets may well absorb any selling from Mt. Gox creditors, but the social sentiment of early Bitcoiners relinquishing their coins could create a bearish psychological sentiment.
For perspective, the total amount of Bitcoin that’s expected to be returned to Mt. Gox victims would be more Bitcoin than every single institution has combined. If the coins were in a single wallet, it would also be the 3rd largest Bitcoin wallet ever. Be careful maxis, you’re about to go bankrupt!
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