mt gox crash

In bear markets, FUD impacts the markets much more than in bull markets, where people often ignore it due to their excitement over rising prices. Many are worried that the price might drop because Mt. Gox is releasing their Bitcoin, but some of these worries could be exaggerated.

Analysts believe that Mt Gox could crash the Bitcoin price

The concerns around Mt Gox have been ongoing for some years now, with many taking the view that when the Bitcoin is released onto the market (all 140k of it) there will be a huge dump in the price.

There is some good reason to believe this, considering that 140k Bitcoin is no small number and it would take billions of dollars in buying pressure to absorb the decline.

There is good reason to suggest BTC will not crash

However, there are many reasons why the Mt Gox Bitcoin being finally released to creditors may not be such a bad thing after all.

Firstly, it has already been announced that the two largest Mt Gox creditors have chosen to receive their funds in the form of BTC rather than in dollars, which means that the BTC may not necessarily be liquidated at all as they are forced to continue to hodl.

Creditors are being given the option of how they want to receive their payments, and it appears that many of the largest creditors would rather keep their BTC (which they have become familiar with after holding for so many years) instead of selling it for dollars and possibly driving the price down.

Moreover, there is a huge deal of liquidity in the BTC markets, and OTC desks would likely not have much of a problem processing such a large amount of BTC sales.

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