Mt. Gox Exchange and German Government\'s Bitcoin Sales Could Cause a Market Surge

The Bitcoin market could be in for a big surge. Mt. Gox exchange's massive Bitcoin payments to its creditors and the German government's Bitcoin sales are raising investor anxiety. Could this lead to a significant drop in the Bitcoin price?

The Bitcoin market could be in for a big surge.

Mt. Gox exchange’s massive Bitcoin payments to its creditors and the German government’s Bitcoin sales are raising investor anxiety. Could this lead to a significant drop in the Bitcoin price?

Popular Analyst Alex Kruger has been analyzing Mt. Gox’s Bitcoin distribution plan and the impact of potential sales on the market. Here are the details…

The Impact of Mt. Gox Payments Impact on the Market

As we also reported as Kriptokoin.com, Mt. Gox exchange will distribute a total of 141,000 BTC to its creditors. 95,000 BTC of this distribution will be given to creditors who prefer early distribution with a 10 percent cut.

According to Kruger’s estimates, 20,000 BTC of this 95,000 Bitcoin will go to loan funds, while 10,000 BTC will go to a New Zealand exchange in the process of bankruptcy. The remaining 65,000 BTC will be distributed to individual creditors.

Kruger predicts that 30 percent of the 65,000 Bitcoins that will fall into the hands of these individual creditors will be sold immediately. This will create a selling pressure of 19,500 BTC on the market.

If this sale happens all at once, it could lead to a significant drop in the Bitcoin price. However, in the more likely scenario, spreading these sales over time could reduce the pressure on the price.

German Government’s Bitcoin Sales

The German government is also planning to sell the 23,700 BTC it holds. According to Kruger’s analysis, the German government may carry out this sale in one go.

In this case, there could be a total selling pressure of around 43,200 BTC in the market. Selling such a large amount at once could lead to sudden and large drops in the BTC price.

16,038 BTC ($910M at the time) moved price by -3.5% ($2,000). The market could absorb the rest in one scoop. Just as the market can absorb Mt. Gox flows. These will eventually run out.

Kruger predicts that these sales could drop the BTC price by 10.5 percent from current levels. This means that the Bitcoin price could fall as low as the $47,000-48,000 range.

However, how markets react to such events is not always predictable and different factors can come into play.

The Future of the Bitcoin Price

The BTC price fell as low as $53,500 on the back of Mt. Gox’s payment process and the German government’s sale plans, it fell as low as $ 53,500. However, it then recovered 3.4 percent to reach $57,330.

This recovery may indicate that the temporary selling pressure in the market has subsided and investors are buying again.

While Kruger’s calculations are valuable for predicting potential market declines, actual market dynamics are affected by many factors.

As a result, Mt. Gox’s massive Bitcoin payments to its creditors and the German government’s sale could cause huge fluctuations in the BTC market. According to Alex Kruger’s calculations, this could lead to a 10.5 percent drop in the BTC price. However, how markets react to such developments is not always predictable and investors need to be careful.

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