The post Could Germany’s $3 Billion Bitcoin Sale and Mt Gox Repayment Trigger Crypto Collapse? Expert Analysis appeared first on Coinpedia Fintech News
Bitcoin’s price temporarily fell below $60,000 as the double whammy of the German government wallet selling and the immanent repayments from Mt Gox caused market volatility.
But will it crash BTC and the wider market?
We review the evidence from experts and consider a new token DTX that’s going from strength to strength despite BTC’s price decline.
German Government sells off some of its Bitcoin spoils
On June 19th, on-chain analysts noticed that a wallet associated with the German Government transferred over 6500 Bitcoin, around $425 million at the current BTC price. This caused raised eyebrows, as the wallet, containing 50,000 Bitcoin, had been dormant since February.
This Bitcoin is thought to be the result of the Government confiscating money from a piracy video website.
Analysts were right to be on alert, as the Government then sent another 700 Bitcoin to Coinbase. Data from Arkham Intelligence shows that a further 800 BTC, worth $52 million, was sent to an unknown wallet.
Data from Arkham Intelligence, shows that the German Government has today transferred a further 200 BTC to Coinbase, 200 to Kraken, and 500 BTC to the same unknown wallet.
This is merely the tip of the iceberg, however, since the wallet still has over $2.84 billion Bitcoin left. Traders are wondering if and when these coins will move, and what effect this could have on the Bitcoin price.
Yesterday the BTC price dropped below the psychological threshold of $60,000, falling as low as $59,086, before recovering and returning to the current BTC price of around $61,000.
Expert analyst Willy Woo said that this event may put pressure on Bitcoin for the next month or so, with lots of volatility ahead.
And that’s not all. The Bitcoin lost to Mt. Gox, the now-defunct exchange, is finally being returned to the victims.
What will happen to the BTC price after Mt. Gox repayments?
Mt Gox, once responsible for over 70% of the trading volume of BTC, was famously hacked between 2011 and 2014 and then went bankrupt.
After years of court cases, Bitcoin can now be repaid to its creditors. And it’s a lot – worth over $9.4 billion.
Unlike the German Government news, this repayment has been planned for a long time. There’s been a lot of confusion on how much people will get, with Reuters and the BBC wrongly estimating traders will receive a tiny fraction of their original BTC.
Holders on Reddit confirmed that while they weren’t going to get back the full amount lost, the repayments would still be sizeable and worth much more than they were worth at the time of the hack. This creates the potential for a lot of selling pressure.
However, experts like DaanTrades and Tony Sycamore believe this has already been accounted for in Bitcoin’s price. They also say that most of these holders continued to buy BTC after the hack and so are unlikely to sell it all now.
Other experts suggested that those who want to make profit will have been selling their existing holdings in anticipation before the BTC price could tank.
Alex Thorn, head of research at Galaxy Digital, tweeted that he believes that only approximately 65,000 of the total 141,000 BTC would be sold, due to the diamond hands of the holders.
Popular technical analyst Roman tweeted that on a longer time frame, we should expect a 90k BTC price
Are miners the real reason for the drop in BTC price?
According to other experts, some of the volatility of Bitcoin is due to the recent halving event which has forced many miners to capitulate and sell their BTC to cover their losses. Or to invest in newer and faster machines to mine with.
While this is bearish in the short term, the increased scarcity generated by less mining tends to increase the BTC price in the long run.
The current drop in Bitcoin’s price could be a good time for traders to buy the dip.
One thing is clear, while the BTC price is suffering, altcoins are not down as much as they would usually be following a Bitcoin drop.
So traders wanting to make profits in these volatile conditions look to a new coin and exchange in presale called DTX.
Altcoin DTX rises by 200% as Bitcoin falls
A new token and concept has traders intrigued. It has attracted nearly $750 million of investment in just a few weeks and has doubled in price already.
This is the token of the upcoming DTX Exchange, a trading platform that offers anonymous trading of over 120,000 financial instruments. This includes crypto and also traditional finance assets such as stocks and bonds.
Despite the number of centralized exchanges, decentralized exchanges, and brokerage platforms – no one offers what DTX does; KYC-free trading of all different types of financial products.
The platform is even more interesting when coupled with its offering of up to 1000x leverage.
If people have learned anything from the Mt Gox hack and the fall of FTX, it’s the old maxim ‘not your keys, not your crypto.’
With DTX exchange this won’t be a problem as funds will remain in people’s self custody wallets, providing safety and security in the decentralized way that Satoshi and the Cypherpunks intended.
Visit DTX presale