If recent history is any guide, crypto traders should be bracing for some serious volatility in the price of bitcoin and bitcoin cash during the coming days and weeks.
And no, it won’t be David Tepper’s “tepid” (no pun intended) assessment of crypto’s value. Rather, as The Next Web’s crypto vertical pointed out, the Mt. Gox bankruptcy trustee (who has in the past denied that his trades had ANY impact on the price of bitcoin even though his trades almost exactly correspond to some of the largest dips in recent months), has moved 16,000 bitcoin and 16,000 bitcoin cash to two separate wallets – a decision that TNW says is a sign of another impending dump.
The 16,000 BTC have been transferred to the address below…
…While 16,000 BCH have been sent to this address:
For what it’s worth, TNW wasn’t able to confirm that the accounts are attached to an exchange – something that would firm up its thesis that more sales are imminent. However, it did point out that this is the first time that Mt. Gox trustee Nobuaki Kobayashi has moved any coins from the Mt. Gox wallet since February…
…Of course, crypto bulls will likely wince when they recall how THAT turned out.
In a report released back in March, the so-called Tokyo Whale (no, not that Tokyo Whale) revealed that he had sold roughly $400 million worth of bitcoin and bitcoin cash beginning late last year and ending in February. But despite the unprecedented crash that bitcoin experienced during the first quarter, Kobayashi insisted in the report that his selling had nothing to do with the negative price activity.
But describing that claim as “specious” would be almost too charitable. Instead, by offering this explanation, Kobayashi, pictured below, is probably engaging in some badly needed CYA – given that he’s obligated to sell the coins at the best price possible to help reimburse Mt. Gox customers who lost everything when the exchange collapsed back in February 2014.
Those same customers should at least have some hope that they might soon be made whole (or at least partly whole) after years of waiting. Now that Kobayashi has finally realized some cash gains, the trustee has recently recently started making some payouts.
But one crypto trader said during a conference appearance this past week that the wallet does appear to belong to an exchange desk , which would signal that another dump will follow in the coming weeks.
“It appears that the Mt. Gox trustees have moved the funds to a wallet belonging to an exchange desk,” cryptocurrency trader and speaker Ivo Jonkers told Hard Fork. “The last time this happened, Mt. Gox proceeded to sell the funds at market rate, practically sending the entire market in the red.”
“I wouldn’t be surprized if this happens again,” he speculated.
Bitcoin has been climbing in April, but has recently run into some resistance around the $9,000 level – a level around which it has been fluctuating in recent days.
But if this ominous indicator proves correct, early May could be a bloodbath. So, instead of “Sell in May and Go Away”, bitcoin traders should keep a watchful eye out for opportunities to “buy the Mt. Gox crypto dip”.
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