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Imagine you bought #Bitcoin 
when it traded for $700. Would you sell for $19,000?
Today we will learn how one of the BIGGEST events in crypto will play out.
I’m talking about the MT. GOX HACK and the impending release of 140,000 #BTC into the market.
/THREAD/ Retweet it!
when it traded for $700. Would you sell for $19,000?Today we will learn how one of the BIGGEST events in crypto will play out.
I’m talking about the MT. GOX HACK and the impending release of 140,000 #BTC
into the market. /THREAD/ Retweet it!
1) In the early years of crypto, Mt. Gox (based in Japan) rose to become the no. 1 crypto exchange.
In 2013 and 2014, it was handling 70% of ALL BTC VOLUME.
In 2013 and 2014, it was handling 70% of ALL BTC VOLUME.
2) Then, in 2014, 850,000 BTC – 6% of ALL BTC IN CIRCULATION at the time – went missing.
The exchange went bankrupt, but about 200,000 BTC has been recovered since then.
The exchange went bankrupt, but about 200,000 BTC has been recovered since then.
3) What followed was a still-ongoing legal mess, with users trying to get their hands on their crypto.
Eventually, it was decided that 140,000 BTC will be released to the users as compensation.
Eventually, it was decided that 140,000 BTC will be released to the users as compensation.
4) This release has been postponed a number of times, but the current deadline is today, 15th of December 2020.
Now, we still can’t be completely sure that the $BTC will be released today, but it does seem very likely that it will happen.
It will definitely happen soon.
Now, we still can’t be completely sure that the $BTC will be released today, but it does seem very likely that it will happen.
It will definitely happen soon.
5) What would this mean for the market?
At the time of the hack, BTC was trading for around $700.
That means that the users will be up around $18.5k PER COIN.
That’s a temptation to sell if there ever was one.
At the time of the hack, BTC was trading for around $700.
That means that the users will be up around $18.5k PER COIN.
That’s a temptation to sell if there ever was one.
6) Besides, some of the former users probably aren’t active investors anymore, and they will hurry to get their BTC onto an exchange.
As for the rest, we can’t know how many of them will sell, but we can assume it will be a lot.
As for the rest, we can’t know how many of them will sell, but we can assume it will be a lot.
7) This will create an insane amount of selling pressure, and it could force the price of $BTC down.
For comparison, 140,000 $BTC is almost TWICE the TOTAL BALANCE of $BTC currently on Binance.
Also, 0.75% of the entire circulating supply right now.
For comparison, 140,000 $BTC is almost TWICE the TOTAL BALANCE of $BTC currently on Binance.
Also, 0.75% of the entire circulating supply right now.
8) Now, this looks bearish.
But it is still likely that it won’t cause more than a short-term dip.
Why?
But it is still likely that it won’t cause more than a short-term dip.
Why?
10) Well, if this release is astronomical, so is the current buying pressure from institutional investors.
Grayscale is currently buying around 80k BTC PER MONTH, and that’s just one entity.
Because of that, the 140,000 BTC could be gobbled up pretty quickly.
Grayscale is currently buying around 80k BTC PER MONTH, and that’s just one entity.
Because of that, the 140,000 BTC could be gobbled up pretty quickly.
We know that the release will be a huge event for the market, probably causing a dip short-term.
But, with institutions lining up to buy, we shouldn’t be too worried about the long-term effect.
Maybe it will bring in even more investors that have been waiting for a good entry.
But, with institutions lining up to buy, we shouldn’t be too worried about the long-term effect.
Maybe it will bring in even more investors that have been waiting for a good entry.
