Bitcoin (BTC) could see a new “bearish signal” in the coming days as the Mt. Gox saga enters its final and potentially expensive phase.
As noted by on-chain analytics resource CryptoQuant on December 8th, the defunct exchange is Mt. Gox’s withdrawal deadline is only one week.
Mt. Gox rehabilitation period looms
After several delays, the mountain’s creditors did. Gox, who lost money on his 2014 implosion, is expected to know when he will receive BTC on Dec. 15 – and the temptation to sell for a profit could prove too great to stave off a mass run on the exchanges .
“Put the Mt.Gox drain alarm. Manage your risk, ”CryptoQuant CEO Ki Young Ju warned Twitter followers.
Mt. Gox was the most famous cryptocurrency exchange until it was hacked for funds at 860,000 BTC. After years of legal disputes, around 140,000 BTC are distributed to creditors as part of a rehabilitation program.
Since Mt. Gox’s website went offline in February 2014. Bitcoin has appreciated in value, which means that funds from the rehabilitation program are now worth $2.63 billion.
As CryptoQuant notes, this means great potential selling pressure. With around 28,000 BTC mined every month, the transport corresponds to a supply of around five months.
“It could be a bearish signal of $ BTC bringing 150,000 BTC to market …” another tweet read.
Disrupt the eerie Bitcoin calm
The past week has seen little activity in the Bitcoin markets as BTC / USD enters a consolidation phase after rampant volatility.
Proponents are taking advantage of the deadline to double their positions, and MicroStrategy announces a round of donations for $400 million more BTC on their next purchase.
Other corporate buyers, including investment giant Grayscale, are also continuing to raise funds.
As Cointelegraph reported, apart from Mt. Gox, macro events will also affect Bitcoin price action this week.