Home Altcoins Investors Concerned About Further Mt. Gox Trustee Sell-Offs

Investors Concerned About Further Mt. Gox Trustee Sell-Offs

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For the creditors looking to be repaid in fiat for the cryptocurrencies lost by Mt. Gox, the sell-offs have been good news, as they signal progress in the civil rehabilitation process that began in June. Many current cryptocurrency investors, however, are left on edge about the potential of another $621 million worth of BTC being dumped on the markets, especially as buying volume is decreasing amidst the persisting bear market.

Currently, the average daily trading volume for Bitcoin is approximately $4 billion according to some estimations, which increases slightly during price rallies. Although a big portion of large-quantity sales can be absorbed by the markets, a dump of hundreds of millions of dollars’ worth of Bitcoin at one time could push the price down, triggering stop-losses set by traders, therefore pushing the price down even further.

The timing of which he decides to make a sale will also impact the result of Bitcoin’s preceding price action. If he sells while investors are in a buying frenzy during rallies, the impact could be nominal as compared to selling while the markets are crashing.

Although price drops cannot be directly linked to the trustee’s point-of-sales, it is likely that the sales only perpetuate market crashes by adding to the weakness and sale volume, making the drops greater than they would otherwise be.

Source: NEWBTC

 

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