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With 150,000 BTC bound for the market, will Mt Gox influence Bitcoin prices?

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08
Jul
  •  Mt Gox may influence another Bitcoin crash with its plan to release 150,000 BTC to customers. 
  • Bitcoin has managed to gather some gains and appears to be on the verge of a bull run. 

Bitcoin price is at a delicate stage where it could easily go into another crash, especially with the plans Mt Gox has to flood the market with 150,000 BTC. Bitcoin price is gradually rebounding, fighting against resistance levels after shedding more than 50 percent from its ATH. Currently trading around $21,600, the largest crypto asset by market cap has gained more than 5 percent in the last 24 hours. 

Read More: Bitcoin and Altcoins jump over 5%, has Bitcoin (BTC) bottomed already?

Japanese crypto exchange Mt Gox has revealed plans to make Bitcoin payments to customers. Although, the crypto exchange has been planning to send the crypto to customers for some years. Initially, the plan was approved in 2018 and was later confirmed in 2021. However, customers will not be receiving 850,000 Bitcoin as originally planned. Even as Mt Gox plans to send 150,000 Bitcoin, the company has 137,890 BTC in its exchange reserve, according to on-chain metrics. With the current trading price, the total Bitcoin Mt Gox will be sending is worth over $$3.2 billion. 

Mt Gox to drive selling pressure and Bitcoin sell-off

With such an amount in the market, there will be increased pressure on the already weak BTC bulls. Even if 50 percent of receivers hold on to their crypto, there is a high possibility of a massive sell-off. Although the cryptocurrency may appear to be rebounding and increasing, it could simply be a buzz that will flip quickly. Mt Gox may simply be sending Bitcoin down the drain. The crypto could go back to the midpoint of the Void at $19,065, going through more ups and downs. Eventually, BTC may plunge to around $11,898. 

With Bitcoin’s price gaining momentum, many altcoins have also joined the rally. Currently, the digital asset is retesting the 200-week Simple Moving Average (SMA). Although this has historically marked the bottom of each Bitcoin cycle, the price has created history on this break. It produced a total of four weekly candlestick closes below the level. 

The current happenings have raised speculations that the rally may pierce through the 200-week SMA. Speculations also have it that it may tag the $25,000 level. However, BTC needs to hit the intermediate resistance level of $23,480 before it can revisit $25,000. 

Even as many may be pressured to sell off their Bitcoin holdings, some investors will continue to amass more of the cryptocurrency. Bullish investors seize times like these when cryptocurrencies are at their lows to invest in the market. 

Recently, a senior commodity strategist at Bloomberg, Mike McGlone, said Bitcoin could lead the biggest bull run in history. McGlone said BTC could trigger the next bull run in the second half of the year.

Bitcoin could be one of the greatest bull markets in history at a relatively discounted price to start 2H. Or the crypto may be a failing experiment in the process of being made redundant, like #crudeoil. Our bias is Bitcoin adoption is more likely to continue rising.

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