- Introduction to potential bitcoin selling pressure
- Long-awaited Mt. Gox creditor payouts
- Subdued Bitcoin prices
Bitcoin may experience significant selling pressure soon due to upcoming payouts from Mt. Gox and potential sales by the US government.
Introduction to potential bitcoin selling pressure
Over $14.8 billion worth of Bitcoin could soon flood the market, adding downward pressure on the price. The US government holds more than 203,000 BTC worth $12.1 billion, while defunct crypto exchange Mt. Gox is set to distribute another 46,000 BTC worth over $2.7 billion.
Long-awaited Mt. Gox creditor payouts
Mt. Gox plans to distribute the $2.7 billion by the end of 2024 on Kraken, but it's unlikely to cause significant market impact, according to an August 29 report by crypto analytics provider Kaiko. Mt. Gox creditors have been waiting to receive over $9.4 billion worth of Bitcoin for the past 10 years, and many investors might look to sell.
Subdued Bitcoin prices
Meanwhile, Bitcoin's price remains under the $60,000 psychological mark, having fallen over 10.7% on the monthly chart. Analysts warn that the low liquidity typical of summer may continue into September, making it difficult for Bitcoin to overcome the $63,900 resistance.
The planned payouts from Mt. Gox and potential sales by the US government could put significant pressure on the Bitcoin market, leading to further declines.
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