A widely followed crypto analyst is warning of an elephant in the room that could trigger another sell-off event for king crypto Bitcoin (BTC).
In a new strategy session, Nicholas Merten, the host of DataDash, tells his 512,000 YouTube subscribers that dormant sell-side pressure from the Mt. Gox debacle may rear its head and cause another leg down for the top crypto asset by market cap.
“There is a question we need to ask, as to whether or not the Mt. Gox trust is going to [cause the price of BTC to dip], or more specifically, what’s more relevant is whether or not the long-awaited unloading of this Bitcoin back to its original holders is going to happen due to pressure from those holders to be able to finally get access to that Bitcoin.
The second question is whether or not the sell-off from that is going to be the bottom, because as we saw during that last bull market, the [Mt. Gox’s BTC] holdings not even dropped in half. It dropped from around 200,000 to 137,000 [BTC]. If we see this kind of sell pressure or in this case unloading of Bitcoin into the supply in the open market, what is that going to mean for price?”
Mt. Gox is a defunct crypto exchange that was based in Japan. It went bankrupt in 2014 after being hacked. In July 2022, it was announced that it will be repaying former customers as part of its bankruptcy proceedings.
Merten says that the payment of BTC to Mt. Gox’s former clients could be an immense source of sell-side liquidity.
“I think it is going to mean a brutal amount of sell-side pressure. People who have had Bitcoin since back when it was double, triple digits, just a couple dozen dollars, or a couple hundred bucks, and they’re going to want to start to take profit because they feel that Bitcoin as an asset is done for.”
Bitcoin is changing hands for $17,195 at time of writing.
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Source: https://dailyhodl.com/2023/01/09/analyst-warns-of-2330341000-elephant-in-the-room-for-bitcoin-btc-heres-what-he-means/