Experts Suggest Mt. Gox Sales in Germany Could Signal Bitcoin’s Bottom
The crypto market is facing challenges as potential Bitcoin sales from Mt. Gox and the German government are causing concern among investors. Analysts are speculating about the impact of these sales on market conditions and where prices may be headed next.
Bitcoin experienced a 7% drop in value, hitting a four-month low of $53,550, triggering a wave of liquidations across the crypto market. Repayments from Mt. Gox are set to begin in July after extensive preparations for fund distribution to creditors.
Germany holds 50,000 BTC valued at approximately $2.72 billion, while Mt. Gox users are awaiting funds totaling $7.7 billion lost in a hack over a decade ago. The timing of the sales from Germany and Mt. Gox remains uncertain, but experts believe that once these sales are completed, selling pressure in the market may ease.
Analysts like Joe Burnett suggest that Germany’s sale of 50,000 Bitcoin could signal a market bottom. However, large buyers may adjust their bids to avoid overpaying, potentially causing prices to drop further until all Bitcoin is sold. Once the sales are complete, the price could stabilize or even rise.
A recent transfer from a cold storage wallet linked to the Mt. Gox bankruptcy estate added to the market pressure. Selling pressure is expected to persist in the coming days, according to Rachel Lin, CEO of SynFutures. The market anticipates a possible dump of Mt. Gox tokens, but a rebound could occur if selling is less than expected.
Lin also mentioned that if selling pressure increases, the price could drop to around $50,000. However, the market situation may change depending on the actual selling behavior of Mt. Gox users.
Overall, the crypto market is closely watching the developments related to Mt. Gox and the German government’s Bitcoin sales, as they are likely to have a significant impact on market dynamics and prices in the near future.
