What’s Going On?
It looks like the collapse of the largest Bitcoin exchange four years ago has put major downward pressure on global Bitcoin prices since last September.
Why Does It Matter?
The long term ramifications of security breaches and failing exchanges are only beginning to be understood.
Nobuaki Kobayashi, the bankruptcy trustee for Mt Gox, stated in filings for its 10th Creditors Meeting that he had sold $400 million tokens of Bitcoin and Bitcoin Cash since September to raise money to meet bankruptcy claims. Mt Gox was the largest Bitcoin exchange until hackers stole billions of dollars’-worth of the currency. According to Zero Hedge, that means coins were sold at the highs reached toward the end of last year, making Kobayashi the “offer-side of Bitcoin for two months”, offloading 40,000 Bitcoins.
Has The Price-Pressure Stopped?
According to Bloomberg, Kobayashi “has another $1.9 billion to offload”.