Bitcoin Maxi Hints What Comes Next After Germany, Mt Gox Selloff
One Bitcoin (BTC) maxi has weighed in on the potential outlook of the crypto market after the selloff scare from the German government and defunct cryptocurrency exchange Mt.Gox.
Bitcoin Market to Normalize in Two Months
Renowned investor Fred Krueger took to X to share what he described as “Thought experiment” on Bitcoin. He started by recalling when Bitcoin was still trading around $65,000.
According to Krueger, this coincided with the period when it became apparent that Mt.Gox sales and Germany dumping would take place in the next 30 days. Based on the assumption that both sales will generate $4 billion and that they would be done gradually at 40x multiplier, the Bitcoin proponent assumes that BTC will record up to $160 billion loss in market capitalization.
Thought expirement.
We were at 65K and it became clear that the Mt Gox sales and Germany sales would happen in the next 30 days. Lets assume 4 Billion between both happening in July.
If this would be done gradually, at 40x multiplier, that is 160 Billion in market cap, or… pic.twitter.com/vgUKJHo566
— Fred Krueger (@dotkrueger) July 5, 2024
This could also mean an 8% drop in BTC price, bringing it down to $59,000 from the initial $65,000.
Krueger raised another assumption about $4 billion in speculative shorts moving in to capitalize. In his words, “they short in Futures. Again, if this was slow, deliberate move it might move things to 59K. But it’s not. It’s a concentrated, manipulation designed to create panic. We get double that move, down to 53K.”
Furthermore, he noted that some traders could bag massive profits from short-term holders who panic upon the release of these Bitcoin units. Also, the second group that could draw in more profits for traders are the Mt.Gox holders who sell after the reimbursement.
Two months after the sales of these Bitcoin, Krueger believe the market will return to normalcy. For now, Bitcoin is trading at $55,419.33 with a 2.74% decrease in the last 24 hours. Notably, this new price level shows a slight recovery considering that the coin dropped below $54,000 earlier on Friday.
More Mt.Gox And German Government Bitcoin Transfers
The long-awaited Mt.Gox repayments have finally commenced and has created a stir in the cryptocurrency market.
With the transfer of more BTC, Bitcoin price dropped below $54,000 and this has heightened fears of further declines. 1,157.1 BTC, valued at $63.57 million, was transferred to a new address “bc1qkj…ug68h” and 1,544.67 BTC, worth $84.87 million, was moved to Bitbank. Another 47,229 BTC, valued at $2.7 billion, was transferred to a new wallet.
Similarly, the German government has offloaded another 547 Bitcoin today from its holding. The latest transfer brings the total holdings of the German government to 41,220 Bitcoins currently valued at $2.27 billion.
Read More: Ripple CLO Slams US Authority Over Crypto Regulation Approach
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