The Mt. Gox Bitcoin sale around 35,841 and 34,008 Bitcoin Cash worth of $362 million and $45 million respectively that have been made over the period of three months from December 2017 to February 2018. This has led the prices of BTC and BCH to crash down.
BTC and BCH worth $362M & $45M Sold resp.
It has been disclosed in a report to the Tokyo District Court that Mt. Gox trustee has sold a huge amount of Bitcoin and Bitcoin Cash over the period of the past three months. To be exact, about 35,841 BTC for $362 million and 34,008 BCH for $45 million have been sold.
The former CEO of Mt. Gox, Mark Karpeles enunciated that these cryptocurrencies were sold between December 2017 and February 2018 through a bitcoin exchange.
According to the translated version of the report:
“As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above.”
It has been further mentioned:
“I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of the sale. I plan to consult with the court and determine further sale of BTC and BCC.”
However, there is no explanation for the reason behind selling these funds or even why now. Moreover, the name of the exchange who provided the assistance along with sale process is also not disclosed.
As of now, the trustee has another 165,000 bitcoin worth $1.5 billion and bitcoin cash of worth $150 million, but it remains unclear as to what will be done with these funds.
BCH and BTC Price Fall Down
The cryptocurrency market including the investors and traders alike is trying to deduce the reason behind the bitcoin sale with no luck. Though it certainly brings a good news for the creditors of Mt. Gox as they are eligible for the compensation.
However, the point of concern here is selling so much bitcoins can affect the crypto market drastically as it can trigger the volatility, if not cautious.
Currently, the cryptocurrency market is experiencing the price loss with Bitcoin losing 2.86 percent and going down at $10,685 while Bitcoin Cash has lost 3.73 percent and is at $1,172 price level.
Given the massive amount of BTC and BCH remaining with Mt. Gox, if it decides to sell it as well, it is a high possibility that we would get to see a long-term downward trend in the cryptocurrency market.
What are your views on Mt. Gox selling such an immense amount of bitcoin and bitcoin cash? Do you think the bitcoin prices will get a more severe hit? Let us know below!
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.