Could This Be The Secret Behind Bitcoin Price Drops? ?

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At long last we may have an explanation as to why the Bitcoin price keeps failing to recover.

The is a photo of an attorney named Mr. Nobuaki Kobayashi.

He is the bankruptcy trustee listed in this Tokyo District Court document dealing with the MtGox Bitcoin exchange which collapsed back in 2014.

[ https://www.mtgox.com/img/pdf/20180307_report.pdf ]

Ever since then the MtGox users who lost money have been seeking compensation.

Mr. Kobayashi has been working to make that happen by administering the remaining assets of MtGox.

Of page 2 of the court document he states the companies assets stand at 44.17B Yen, which is approximately $416m.

In section 2 of the report, he states that since the last meeting and with permission of the court he has sold almost 36,000 BTC and just over 34,000 BCH.

The most recent meeting was held on the 7th of March 2018 and the previous meeting was 27th September 2017.

So for the first 2 months of this year and 3 months of last year, this guy has been selling hundreds of millions of dollars worth of Bitcoin any time he could get a high price for them.

He says these exact words in the court document after quoting the figures.

Then he says he plans to consult with the court to determine further sales of the Bitcoin he is holding.

And how much Bitcoin is he still holding?…
According to section 3, as of the 5th of March 2018, he’s holding over 166,000 Bitcoin and 168,000 Bitcoin Cash, which he will have got from the Bitcoin Cash hardfork.

So out of a hoard of around 200,000 Bitcoin and 200,000 Bitcoin Cash, he’s only sold about 25% of them.

If he carries on like this, he will likely sell into any decent Bitcoin rally which will result in a series of false starts where the price looks to be recovering and will then drop back down again.

This will continue until he has either exhausted his supply of coins or until his supply gets down to a minimum level that has already been pledged in refunds to MtGox customers.

And that is assuming he doesn’t find more Bitcoin that belongs to the company. Remember that a total of 850,000 Bitcoin went missing from the MtGox exchange, meaning up to 650,000 of them may still turn up.

While you would think that selling 35,000 Bitcoin over a period of 5 months is nothing, I mean, it’s only an average of 226 BTC per day, in a market that has a total volume of 800,000 BTC per day.

However, as reported by Bitcoin.com, the sale of 18,000 Bitcoin by Mr. Kobayashi in one day back on the 5th of February 2018 coincided with market prices crashing.

So there we have it. A big whale, hiding in plain sight and with no particular malicious intent, just an obligation to administer the funds in the best way for the MtGox creditors.

Could This Be The Secret Behind Bitcoin Price Drops? ?

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Kane Dane