The events that happened to Mt. Gox have plagued Bitcoin and the Bitcoin price for a long time now. Some time after the exchange closed down, a massive Bitcoin selling begun from a Mt. Gox trustee. The last time we wrote about this was in the end of April of 2018. Then it was reported that the Mt. Gox trustee was selling another 17,000 Bitcoin and this caused Bitcoin’s prices to go down. Well, there is great news for Bitcoin price: Mt. Gox is entering civil rehabilitation procedures and the selling will stop. This is great news for Bitcoin and Bitcoin investors, because Bitcoin price will go up with less resistance now. But there is also bad news, that every cryptocurrency enthusiast and Bitcoin investor should consider.
The Mt. Gox hacking has plagued Bitcoin Price for years
The news was announced in 22th June, by a statement and documents that confirm the Mt. Gox move. Their attorney, that is responsible for the massive Bitcoin selling, will act as a trustee to the civil rehabilitation move. His name is Nobuaki Kobayashi and he is responsible for all Bitcoin selling and also for multiple drops in Bitcoin price and subsequently the whole market’s decline.
Mt. Gox was one the biggest Bitcoin exchange at one time, being responsible for over 70% of all Bitcoin transactions between 2013 and 2014. But in February of 2014, all transactions, trading services and accounts were closed, because it became clear that the exchange was hacked. The company filed for bankruptcy followed by liquidation and reimbursing processes that are still ongoing. The total stolen Bitcoins was 850,000 and people are yet to be compensated.
In the newly released document, Nobuaki Kobayashi wrote:
“The power and authority to administer and dispose of Mt. Gox’s assets is still vested exclusively in me, and I will implement the civil rehabilitation of claims, subject to the Tokyo District Court’s supervision…In the civil 2 rehabilitation proceedings in this matter, claims seeking a refund of Bitcoin (Bitcoin Claims) will not be converted into monetary claims after the commencement of the civil rehabilitation proceedings.”
The previously filed bankruptcy is being stopped, because of the civil rehabilitation of Mt. Gox, so the Bitcoin selling is stopping. The exchange’s users will receive their compensation in Bitcoin instead of fiat currency in the beginning of 2019.
Court approves Mt. Gox civil rehab. Mostly good news:
1) Trustee won’t sell more BTC
2) Creditors receive BTC (not JPY) in early-mid 2019
3) Everyone must refile claims by Oct
4) Bad news: some creditors will sell BTC, so that will hang over market next yrhttps://t.co/gc8SW5tnER https://t.co/3AC49MvEVI
— Yuji Nakamura (@ynakamura56) June 22, 2018
Bitcoin Price will increase by the end of 2018, but will decline afterwards
Mt. Gox attorney, Nobuaki Kobayashi has a far greater role in the decline of Bitcoin price, than people think. Every time that Kobayashi took to the bigger exchanges to sell Bitcoin, it was recorded that Bitcoin Price drops every time. So the correlation between Bitcoin Price drop and Mt. Gox selling is undeniable. So the stoppage of Bticoin selling, means that there will be much less resistance on the way up. So by the end of 2018, i expect that Bitcoin Price will go up far easier. Maybe we can see a bigger peak to Bitcoin’s price.
Bad News: Bitcoin Price should surely fall in the beginning of 2019. A lot of people will be compensated in the beginning of 2019 and a big part of them will want to sell their Bitcoin immediately so they get their money. This will trigger a snowballing effect and if more people panic to the massive selling that will happen, then Bitcoin could crash hard. This should be something that every investor should consider, because in my eyes the probability is high. Cryptocurrency traders can include this into their trading strategy, because this can be a big factor in the cryptocurrency economy.
- Security Token Offering (STO) Guide: Everything you need to know about STOs - Feb 28, 2019
- Coinbase Pro is adding Ripple (XRP) support for trading - Feb 27, 2019
- Top ICOs of 2018: Initial Coin Offerings that beat the Crypto Bear’s market - Feb 26, 2019
- Ethereum hard forks Constantinople and St. Petersburg scheduled by the end of the week - Feb 25, 2019
- Ethereum founder and CEO, Vitalik Buterin revealed his non-Ether holdings and revenue sources - Feb 22, 2019
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.