Bitcoin Maxi Hints What Comes Next After Germany, Mt Gox Selloff

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As an experienced financial analyst, I believe that Fred Krueger’s assessment of the Bitcoin market is thoughtful and well-reasoned. His analysis is based on concrete data and assumptions, which provides a solid foundation for his predictions. In my opinion, it is likely that the recent selloff from the German government and Mt.Gox will result in a significant drop in Bitcoin’s price, possibly down to $53,000 as Krueger suggests. However, it is important to note that this is only a short-term outlook and the market is likely to normalize within two months.

A prominent Bitcoiner shares his perspective on the crypto market’s future following the market downturn triggered by the German government’s warning against Bitcoin and the bankruptcy of Mt.Gox exchange.

Bitcoin Market to Normalize in Two Months 

As a seasoned crypto investor, I’d like to share with you a thought-provoking perspective that renowned investor Fred Krueger recently expressed on Bitcoin. He reminisced about the time when Bitcoin was valued at approximately $65,000.

Krueger’s observation indicated that Mt.Gox sales and Germany’s dumping were expected to occur within the next 30 days based on available information. Under the hypothesis that these events would result in a combined $4 billion decrease in value, and assuming a gradual reduction at a 40x multiplier, Krueger estimated that Bitcoin’s market capitalization could potentially suffer a loss of up to $160 billion.

Thought expirement.

I analyzed the situation and discovered that we were currently at a level of 65,000. It was evident that significant transactions from Mt Gox and Germany were imminent within the next thirty days. Let’s consider a scenario where approximately 4 billion was transacted between these two entities during the month of July.

If this would be done gradually, at 40x multiplier, that is 160 Billion in market cap, or…

— Fred Krueger (@dotkrueger) July 5, 2024

This could also mean an 8% drop in BTC price, bringing it down to $59,000 from the initial $65,000.

Krueger put forth another hypothesis regarding approximately $4 billion worth of speculative short positions entering the market. He explained, “They’re shorting in Futures. If this were a gradual, thoughtful maneuver, it could potentially push prices to around $59,000. But it’s not. It’s an aggressive attempt to instill fear and cause a larger price drop. We may see the price fall as low as $53,000.”

He pointed out that certain traders might earn substantial gains by exploiting the fear of short-term investors and buying Bitcoin once they panic sell. Moreover, traders could potentially profit from Mt.Gox account holders who decide to sell their Bitcoin following compensation.

As a crypto investor, I’ve sold some Bitcoins two months ago, and currently, I believe the market will eventually stabilize. At the moment, Bitcoin is priced at $55,419.33, representing a 2.74% decrease over the past day. Notably, this new price point represents a slight recovery after Bitcoin dipped below the $54,000 mark earlier on Friday.

More Mt.Gox And German Government Bitcoin Transfers

The anticipated reimbursements for long-delayed Mt.Gox customers have begun, causing excitement and buzz in the cryptocurrency community.

The recent transfer of large amounts of Bitcoin caused the price to dip below $54,000, fueling concerns for potential further decreases. Specifically, an transaction involving 1,157.1 BTC ($63.57 million) was sent to a new wallet address “bc1qkj…ug68h,” and another transaction of 1,544.67 BTC ($84.87 million) went to Bitbank. Additionally, there was a transfer of approximately 47,229 BTC, equivalent to $2.7 billion, to a newly created wallet.

As a researcher, I’ve discovered that the German government has transferred an additional 547 Bitcoins from its holdings today. This latest transaction increases their current Bitcoin stash to a total of 41,220 coins. With each coin currently valued at approximately $55,306, this equates to a total worth of around $2.27 billion.

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2024-07-05 18:36