Mt. Gox Ends Bitcoin Selling - Market Sure Hasn't
Several hours ago it was reported that the Mt. Gox trustee will no longer be selling Bitcoin to reimburse users, bitcoin will be issued instead.
Decentralization of a Big Bitcoin Seller
According to the report from Coin Telegraph Mt. Gox has entered civil rehabilitation proceedings and the plan to reimburse users with fiat is no longer on the table. They will be given bitcoin instead.
So essentially, this giant single seller we had in the market is now gone. This is usually something to celebrate because a large seller in any asset makes it very difficult for that asset to rise in price.
The irony here is that one of the things people love about crypto is the decentralized nature of it. Well, we just got it as now all that bitcoin will be spread amongst all the affected users.
Begs the Question
Does that mean the selling pressure has changed?
In a way yes, because you don't have a single entity selling large market moving chunks.
However, the same amount of supply is still available. The difference now is it is spread out over many users who may sell everything they receive, sell some of it or even decide to just keep it.
So while the supply side has not change. The selling pressure has.
Crowd of Sellers
According to the report users being reimbursed are likely to receive bitcoin in early to mid 2019. Like it or not that will be a large crowd of potential sellers next year.
Rally???
In the meantime will we see bitcoin rally the second half of 2018? It's not off to a good start as bitcoin sold off hard just before and during this news announcement and is now below the April 2018 lows.
One opinion I can give - this thing looks a bit oversold again. 5,800 area is a level I have my eye on.
For the full cointelegraph article go here: https://cointelegraph.com/news/mt-gox-crypto-exchange-begins-civil-rehabilitation-proceedings-ends-bitcoin-sell-offs
If you haven't downloaded the ScaredyCatGuide to Knowing What the Heck Bitcoin Is e-book what are you waiting for? Get it here: https://scaredycatguide.com/scaredycatguide-to-bitcoin/
Posted from my blog with SteemPress : http://scaredycatguide.com/cryptocurrency/mt-gox-ends-bitcoin-selling-market-sure-hasnt/
Thanks for the update @scaredycatguide I didn't realize there was official news on the Mt Gox holdings.
My pleasure - sadly we are not really seeing much a rally from it.
The market moves in waves, like an ocean, and an event occurring today can result in the beginning of something big even if that something is not seen initially.
#hopefulthinking
Between this and EOS, it's no wonder everything is down today.
Ironically, you'd think BTC would rally on this news with the one larger seller now gone. Maybe this is the final dump we need to capitulate.
If we're truly honest with ourselves, Bitcoin has been in dire need of a price correction for some time. I recall a similar correction happening with Dogecoin a while back, though I don't remember the specific date. Maybe this will lead to more stability?
The price of bitcoin is starting to be based less on speculation and more on adaption with institutional investors starting to control price. I think we need to hear more companies willing to adapt the technology as volitility starts to go down.
I can certainly see that. We are most likely in a transition period, interesting to see how it will play out in price.