Content adapted from this Zerohedge.com article : Source
The Whale of the Rising Sun revealed that, since September, he sold Bitcoin off. The total amount was about $400 million. This could be a big reason for the recent pull back in Bitcoin pricing which also had an effect on the alt-coins.
Nobuaki Kobayashi is the bankruptcy trustee for Mt. Gox.
Mt. Gox was the largest exchange before hackers took off with billions of dollars worth of bitcoin from tens of thousands of customers. Mr. Kobayashi started selling the tokens in September meaning he most likely sold some at the recent peak near $20,000.
In the report, he said he'd started selling off the bitcoin and bitcoin cash to raise money for disbursements that the trustee will soon need to begin making as bankruptcy claims are being evaluated, per Bloomberg.
Matt Odell (@Matt_Odell ) presents the full list of transfers out of their wallet.
As Odell points out "More than half of the bitcoin they sold (18k btc) was transferred to an exchange on Feb 5th. The day before bitcoin hit its 3 month low of ~$6000. They panicked and sold the bottom. Market absorbed it well."
The arrows are the date the bitcoin was transferred out of the Mt. Gox wallets, not the sale date. That probably happened a couple days later as the bitcoin was moved to exchanges.
Bitcoin could face more selling pressure as Kobayashi is sitting upon anoth $1.9 billion worth of bitcoin as reported by Bloomberg.
He says he will offload them soon.
Non-adapted content found at zerohedge.com: Source
It's funny how a person single handedly affects the market globally. $400 million is a massive amount of money.. This honestly couldn't leave the market the same. Selling coins exerts a lot of influence on the market. And I feel their should be a limit set for the whales selling coins. I feel we are yet to see a huge dip which will be exerted by Kobayashi if he decides to sell off the $1.9 billion worth of bitcoin.
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Not compared to the entire market. I dont know what Bitcoin trades in a day but it is in the billions.
$400M in a day might be of impact, but over 6 months? I dont buy it.
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Don't forget Korea and its claims of banning crypto. It scared a lot of asians, and maybe this Gox was one of them.
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Well this has led to some really annoying drops, I hope it goes lower because I missed the last 6k price point. It's crazy how one whale can disrupt an entire market, this is why we need more money in the market. The reason stocks are typically less volatile has to be the crazy amount of money in them, crypto has less than Facebook alone, so when whales wanna sell everyone panicks
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What is crazy is that people believe that $400M is selling affected a market that has billions ($7.7B in the last 24 hours) when moved over a 6 month period.
It didnt happen. Selling $400M in one day...that has an impact. I doubt if he dumped it all in one month if it would make up that much of a difference.
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What do you think it was, just a combination of bad headlines and other FUD? I guess I thought the numbers were higher, is this just mistaken FUD? The dates do line up, but maybe that's just coincidence.
To be fair, a whale could disrupt the market, I'm sure there are a few out there with substantial holdings that could spark a fear based sell-off
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Don't forget Korea and its claims of banning crypto. It scared a lot of asians, and maybe this Gox was one of them.
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Bitcoin daily trading volume is over 9 Billions USD. He didn’t crash the market, but he definitely made things much worse by being grossly incompetent. Looks like he panicked and he sold most of it at the lowest point. He would have had a much, much better deal selling OTC from the start.
Further, the main reason for selling this comparatively small share of the MtGox BTC and BCH holdings (yes they own both now) was to pay for his fees and some of the MtGox Fiat debts. They still sit on over 160.000 BTC and BCH while MtGox customer haven't received anything yet.
On the bright side, at least those Bitcoins were distributed instead of being offloaded to a whale
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hmm, so we might see some prices going down even deeper if he decided to sell everything he got. Gosh, the whole market could go really low! Surely those who believe in cryptos won't sell no matter what, but a lot of people are getting scared that these coins will go down to 0. Yeah, like that will ever happen!
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Hehehe....this guy is really making our life hard. In stead of bringing the money is pulling it out. What about us who invested when Bitcoin was a bit high. Well, it was my fault by then.
This will be an opportunity for people planning to invest in Bitcoin since the price may go down and the many people will be tempted to start pulling out their coins.
On my side, I'm not scared cause I know that one day Bitcoin will reach high and high and I'll earn much from it especially these days when the whole world is trying to understand Bitcoin and invest in it.
@jona12
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Worst class action ever.
normally you get a coupon for $10 off your next visit or something stupid.
They are giving back the JPY value at the time of shut down.
I checked the box to be paid back in bitcoin.
so they dump it on the market.. makes no sense they are going to have to buy back.
as a claim holder I should at least get some inside alerts on when the dumps will happen so i can position myself. maybe the big claim holders do have that access, but i only have a small claim. although, if they would just give me back my btc it would be significantly more.
I had been trying to pull my coins out in the last days. I knew there were issues, so I pulled out half at a time, submitted a ticket for failed withdraws, and tried again.
I also had btc that I accidentally returned to an address that MTGox used to send to me. I submitted a ticket, and they were not "able" to find it. It was a small amount at the time, but is a very significant amount now. So many lessons to be learned over the years, most are quite simple. Hold your keys, p2p only exchanges. escrow for products, check reputation thoroughly.
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Yes, this is true. But you also have an army of bitcoin sleuths who are still pissed off about how the whole Gox thing went down, myself included. Maybe if you were handling your dads estate and no one knew better, but a boomer trades stolen bitcoin on the open market at his own risk. A lot of shady people were on Gox with a lot of connections to violent organized crime. It was the wild west in those days still and I wouldnt want to cross them. Again.
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Once the judge allows MtGox to enter Civil Rehabilitation then the remaining 160K btc are not governed by bankruptcy law which required cash payouts to claimants. The remaining bitcoins are merely corporate assets that must be returned to stockholders. And the stakeholders Karpeles, and some would argue, all his customers overwhelmingly prefer bitcoin to cash.
Since there will be no legal reason to sell the bitcoins they will not appear on the market.
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Honestly, is $400M worth of Bitcoin sold over a 6 month period that much?
I know for an individual it is but did it have anything to do with the market pullback. If he started selling in September and sold throughout, a lot was done during a run up. I know he pushed a lot through in the last couple months, yet it is still a small amount compared to the entire market.
Depending upon the time you looked at it, I believe BTC has a market cap as high as $300BILLION...$400M is a small amount....especially when you look at daily trading volume.
Even if he dumps the $1.9B over the course of a month, I dont think that is a lot compared to the overall volume.
If I had to guess, the market drop mirrored the ramp up of the futures market.
More likely is a bunch of people shorted the hell out of it on the future market ending up in BTC having downward pressure.
This makes more sense to me than a guy with $400M dumping it over 6 months.
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Well I am not a crypto Guru but this doesnt seem like a bad reason to sell off the bitcoin. Is it?
Hmmm so in other words bitcoin might go lower than 6k this time...mehn this is bad news enough for today.
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Its not all bad, more supply and a nice entering point :)
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Very good post @zer0hedge, this is very useful for everyone, and especially for myself. Honestly, I do not really understand about Bitcoin, so from that I often read articles that discuss about Bitcoin. Because I want to learn about Bitcoin. I will always follow your post, so I can continue to learn from your article. Thank you for sharing and hopefully you will be more successful to work ... :)
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This Gox fellow has enough money to never be at a loss. He just cashes in when BTC is too high, causes its price to go down, then buys more and waits for it to go up again by the minnows.
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Thanks for sharing this great information Keep it up
No doubt BTC is the mother of Crypto and every one accpt this that its the mother of crypto and if we see on chart in any site we will see that its on top Thanks for your kind information
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Because it was the easiest way I assume. I mean look at it from his point of view, he probably doesn't give a shit about Bitcoin, he has obligations to produce this and that amount of fiat money by this or that date and he did it in the simplest way possible. He's doing the job he was hired to do.
If the market can't handle someone dumping a few hundred thousand Bitcoin then maybe the whole thing wasn't meant to be.
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Resteemid done man 👌👍
So please visit in my blog
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dear,,,well information.... i hope erly bitcoin up.....
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wow very nice post
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This is good news to me. I’m one of those claimants waiting on those disbursements.
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This will be an opportunity for people planning to invest in Bitcoin since the price may go down and the many people will be tempted to start pulling out their coins.thanks for sharing
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Great post about bitcoin
thanks for sharing
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A whale crashed the market as suspected.
Well their is only two options given the evidence
Trustee moved coins and market sold them
Someone saw the trustee move the coins and dumped, amplified shortly thereafter by the trustee dumping.
Either way the trustee was the catalyst for the dump. Everything else seems like Semantics.
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good post and thanks for the information,
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i cant fathom how people believe 400 million over 6 months could affect the market. @taskmaster4450 is totally spot on in his assessment.
That's like saying a medium sized hedge fund (who over 6 months trades easily 1 billion -2 billion in assets) can crash the stock market.
Uh no..
In crypto...only one guy could do that...that being whomever Satoshi Nakamoto is (who allegedly has 980,000 BTC)
Now that man/person/group...could wipeout this market.
I believe it was a combo of things which caused the BTC drop
-weak buying volume (thats a killer in any financial market)
-Binance's issue (which ended up being 31 compromised accounts)
-weaker buyer sentiment or just indifference to the crypto market by speculators.
Funniest thing i see on crypto Twitter is how many of these crypto gurus...dumped all their alts recently...meanwhile they sell Paetron memberships..i guess to shill shitcoins?
Yeah....that should show you.
Do your own homework.
great post @zer0hedge
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I hope he will not do that. It can be reason for the another decreasing in cryptocurrencies. Notwithstanding, I don't have so much cryptocurrency :) Thanks for the news.
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Thank you so much for sharing this information! i´m not that concerned anymore, its just a matter of time and it will shoot up again...i think :)
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This is one of the reasons, probably the main one, but the reality is that the prices were too inflationated thanks to speculation, and it is a smart move to sell of a lot of BTC. The problem is that $400 million worth of BTC is a significant percentage of the trading volume in the crypto markets.
I still think we might go down to the low of $6K again, I was thinking we would go there days after the first time, and the reality is that BTC price reacted super well and already reached $12K again, we can´t see this red days as bad things because the market is just starting to become more stable after the end of 2017.
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