Sell Pressure From 150K Mt.Gox BTC Could Tank Bitcoin Over 90%, Crypto Analyst Says

The potential sell pressure from 150,000 Bitcoins released to Mt. Gox creditors could be cataclysmic for Bitcoin BTC/USD according to some market analysts.

What Happened: According to Nov. 16 notice from the Mt. Gox Trustee Nobuaki Kobayashi, the rehabilitation plan to disburse 150,000 BTC worth $8.5 billion is now “final and binding.”

The rehabilitation plan was first put into motion in 2018 with the intention to compensate creditors of the now-defunct Japanese crypto exchange Mt. Gox that lost 850,000 BTC in one of the largest hacks in crypto history.

Is Bitcoin a good investment in 2021?

At the time of the hack in 2011, 850,000 BTC was worth $460 million. That same amount is now worth over $50 billion.

With 150,000 BTC due to be released to creditors, some crypto analysts foresee a massive price in the cards for Bitcoin.

When the 150,000+ #Bitcoin is soon dumped on the market, $BTC will likely tank over 80-90%.

No amount of Tether printing can stop the carnage from Mt. Gox. pic.twitter.com/LAZSktudeu

— Mr. Whale 🐳 (@CryptoWhale) November 17, 2021

According to Mr. Whale, Bitcoin could tank over 80%-90% if the creditors sold the BTC paid out as compensation.

“The last time they held BTC, it was $100-$1000. They will undoubtedly sell, which will trigger a major crash,” he said. “Them selling it would cause a huge drop, similar to March 2020. Then all the retail will panic, and sell, which will cause it to drop even more. Will be very bloody. No way to spin this into a bullish event."

Other industry watchers like Lark Davis believe Bitcoin’s daily trading volume can “easily absorb” a few billion dollars worth of sell pressure spread out over a few months.

Daily volume for BTC now is 10X what it was at the peak mania phase of 2017. We can easily absorb a couple billion of sell pressure spread out over a few months. If this is what happens then mt gox BTC release will be a big fat nothing burger!!!

— Lark Davis (@TheCryptoLark) November 17, 2021

Price Action: At press time, Bitcoin was trading at $59,500, up 0.54% in the last 24 hours. The leading digital asset had a daily trading volume of $41 billion.

Photo: Maxim Hopman on Unsplash