bitcoin It rose above $17,000 again, triggering a relief rally in the markets. While this relief rally has yielded big gains for some altcoins going through tough times, the rally has lost some of its strength. At the time of writing, BTC was trading around $17,218 and was slightly higher compared to the previous day. As a matter of fact, some experts think that this rise may fall again after some events. Here are the details.
Large Selling Pressure Risk Remains
Popular cryptocurrency analyst Nicholas Merten, recently discusses the possibility of new selling pressure in his latest video. Analyst, Mt. He thinks that selling pressure from the Gox scandal is possible. According to the analyst, such pressure could trigger a sharp drop in price.
Mt. Gox Postponed Bitcoin Distributions!
Koinfinans.com As we reported, Tokyo-based Mt. Gox was launched in 2010. In early 2014, the exchange was processing about 70% of all Bitcoin transactions worldwide. However, hackers managed to hack into the network and steal the crypto assets of more than 24,000 customers. After this incident, the stock market filed for bankruptcy and ceased its operations.
According to Merten, there’s a question that needs to be asked, and that question goes to Mt. Whether or not Gox-related events will trigger massive selling pressure. Merten made the following comment, noting the assets that fell from about 200,000 BTC to 137,000.
“If we see this kind of selling pressure, or in this case if we see Bitcoin being dumped into supply in the open market, what will that mean for the price?”
NEWS CONTINUES BELOW
Merten, Mt. He argues that providing Bitcoin to Gox’s former clients could be a major source of sell-side liquidity. The analyst predicts that this will lead to intense pressure from the sellers.
Those who have held Bitcoin since its two- or three-digit values, or even just a few dozen or a few hundred dollars, will want to cash in on their holdings, as Merten expects, they will eventually believe that Bitcoin as an asset is obsolete.