The market fell sharply the last 48 hours, without any explanation. Looking on Coinmarket cap, it is a sea of red concerning the prices.
One explanation of this sudden crash stands out more than the rest. The Mt. Gox trustee who was tasked to sell about 200,000 bitcoin after the liquidation of the now defunct cryptocurrency exchange Mt. Gox, has dumped another 8,200 Bitcoin on the market in 4 batches of 2,000 each. Since November such actions has affected global prices several times during Bitcoin sell offs.
The cryptocurrency market is very volatile, and BTC/USD has now dipped sharply, with the altcoin market following, posting losses of up to 18%.
CCN reported that movements of funds of less than a billion dollars when large amounts of Bitcoin are sold, could affect the prices of cryptocurrencies drastically, as this is still a small emerging market.
Despite criticism the Mt. Gox trustee has continued to sell off large amounts of Bitcoin from 4 different wallets on different cryptocurrency exchanges, acknowledging that the sell off of thousands of Bitcoin could easily move the market.
Various reports has now confirmed that the price dip of Bitcoin and other cryptocurrencies on May 11th 2018, was triggered by the sell off of Mt. Gox coins. The Mt. Gox trustee was asked by financial authorities to sell offover 200,000 Bitcoin and transfer it into Japanese jen, but not before September. The trustee had to go to court first, where they would advise him what to do with the coins he is holding, and how to dispose of it.
It is evident, that huge sell off's of Bitcoin and cryptocurrencies will have an escalating effect on the market, as it is a very sensitive and volatile market. It seems as if the trustee doesn't really care how the markets react to the sell off's of the huge amounts of Bitcoin he is disposing and getting rid of. He is just doing what he was told to do.
The question is, can the crypto market be procteted against actions like this. When funds are starting to move, it is visible to everybody on the exchanges, and panic sets in when this kind of thing happens. With Mt. Gox, maybe the solution for the trustee would be to do private sales and not just dump huge amounts of Bitcoin on the market.
Should there be a kind of a protocol where sellers are not allowed to dump millions of dollars of crypto at once, where it will negatively affect the markets and crypto in general.
Please let me know what you think!
Cheers friends!!!