[Opinion: Market oversupply may continue to depress BTC prices] On August 31, the cryptocurrency market may have to deal with potential turbulence in the coming months as several major Bitcoin (BTC) holders - including defunct exchanges and government entities - may liquidate a large number of their holdings. The latest report from Kaiko, a crypto data provider, shows that the crypto market is currently facing a serious oversupply problem. This has been a persistent theme throughout the summer, with forced selling and liquidation of bankrupt crypto assets causing selling pressure at different stages between May and August. Rob Hadick, general partner of Dragonfly, said that Bitcoin prices have been under tremendous pressure this summer, mainly related to Mt. Gox issuance, yen carry trades, and slowing demand. "The market is still worried about the pressure from government holdings and additional issuance from Mt. Gox," he said. One of the main sources of market anxiety is the continued redistribution of funds to Mt. Gox creditors. The bankrupt cryptocurrency exchange's assets still hold more than 46,000 bitcoins, worth more than $2 billion, which will eventually be redistributed. Elaborating on the potential impact of such a distribution, Fideum co-founder Darren Franceschini said that according to forecasts, these Bitcoins, worth more than $2.7 billion, may be almost all sold - if creditors sell their entire holdings, it may add $8.2 billion in additional selling pressure. Other major holders may also increase selling pressure in the near future. For example, the US government holds more than $2 billion worth of Bitcoin. In addition, he added that other countries including the United Kingdom, China and Ukraine also have large Bitcoin reserves. "If the authorities begin to liquidate their holdings on a large scale, the 'Christmas rally' that many cryptocurrency enthusiasts often see may not be realized for the first time this year," said Bartosz Lipiński, CEO of cryptocurrency trading platform Cube.Exchange.
