Bitcoin

New Report Says Mt. Gox Bitcoin Dump Killed Mid-2018 Price Rally

New Report Says Mt. Gox Bitcoin Dump Killed Mid-2018 Price Rally

A fresh report from GoxDox, Mt. Gox’s creditors’ support site, is now suggesting that Mt. Gox’s trustee may have dumped large amounts of Bitcoin. Moreover, this massive cryptocurrency dump may have even ended last summer’s Bitcoin rally.

Mt. Gox trustee said to have ignored advice from Kraken

GoxDox’s report alleges that Mt. Gox’s trustee, Nobuaki Kobayashi, ignored advice on how the Mt. Gox Bitcoin sale should be conducted. For example, Kraken’s CEO Jesse Powell noted that Kraken had been asked for advice on how to sell large amounts of coins.

First of all, Powell responded that a large cryptocurrency sell-off should be avoided in the longest. However, if the coins needed to be liquidated, Powell suggested that this should be done in an auction – which Kraken could facilitate.

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Furthermore, if the sell-off was to be handled more privately – for whatever reason – Powell proposed that Kraken’s over-the-counter desk could handle it. Kraken’s fear appears to have been the potential implications a large sell-off could have for the cryptocurrency market as a whole.

Nevertheless, GoxDox writes that the Mt. Gox trustee ultimately decided to let a Japanese Bitcoin exchanger platform, BitPoint, handle the matter. Moreover, GoxDox points to payments made by BitPoint to the Mt. Gox Estate through February of last year to June 2018.

Did BitPoint dump the cryptocurrency holdings on the open market?

However, Bitcoinist has previously reported that Kobayashi liquidated approximately $400 million worth of Bitcoin and Bitcoin Cash. These sales were said to have taken place between December of 2017 and February of last year.

Kobayashi also noted that he had sold the cryptocurrency over-the-counter, allegedly in ”a manner that would avoid affecting the market price, while ensuring the security of the transaction to the extent possible.”

GoxDox also highlights that there was a consistent flow of payments in Japanese yen from BitPoint to the Mt. Gox Estate within the period of the known Bitcoin sell-off phase, lending credence to the belief that BitPoint handled the affair.

However, GoxDox’s report suggests that BitPoint went on to dump the Bitcoin holdings on the open market. This would then, in extension, have led to further depress the market – bringing an end to the significant gains seen in April and May of 2018.

It is, nevertheless, still some uncertainty to whether this is what actually transpired – but it does undoubtedly make some sense.

Image Source: “Flickr”

Ledger Nano S - The secure hardware wallet