Mt Gox Settlement and $593 Million of BTC and BCH, Will Bitcoin Rally?

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin prices steady after yesterday’s sell-off
Mt Gox trustee approved 802,521 BTC as claims
Volumes stable but below average

Wholesale liquidation of Bitcoin and Bitcoin Cash stash in the hands of Nobuaki could heap pressure on responsible exchanges. Besides, it will also cause unnecessary price fluctuation that may work against victims triggering a sell-off towards Dec 2018 lows.

Bitcoin Price Analysis

Fundamentals

All eyes are on Nobuaki Kobayashi and how he plans to compensate victims of the now defunct Mt Gox following his approval of “802,521 BTC, 792,296 BCH and $38,165,664, and other amounts in various fiat currencies”. At his disposal, according to his latest submission, are cryptocurrencies worth $593 million—in 141,686.35 BTC and 142,846.35 BCH, plus $629,594,540 in cash. However, the trustee is adamant that more of the stolen Bitcoins will be retrieved increasing the number of coins under their control.

Everyone is talking about the 140k BTC potential sell-side pressure from the Mt Gox coin redistribution to creditors

Absolutely no-one is talking about the $627million being distributed to creditors who may then decide to *buy more* Bitcoin pic.twitter.com/3xodxeyxSy

— Alistair Milne (@alistairmilne) March 21, 2019

While previous arrangement has it that settlement will be in BTC and other coins of their preference, the Mt. Gox Legal has now submitted a proposal, a draft, detailing their agreement on how best Nobuaki should compensate clients.

I’m definitely buying BTC back once I get my cash distribution and definitely not selling any BTC if I ever get any of the remaining coins back from Civil Rehabilitation. I know many in creditor groups I’m in are talking about doing the same.

— Adam Pokornicky ∞/21M, 🍄 (@callmethebear) March 21, 2019

Noting that direct injection of all these coins will be too complex and “are concerned that any attempt by the Trustee to sell them en masse on the open market would result in a downward movement of the value and also not be in the creditors’ interests”, they propose that Nobuaki should only sell BTC and BCH—the two most valuable coins under Kobayashi—only when they have been moved to a secure location or redistributed.

Candlestick Arrangement

Despite yesterday’s pressures, Bitcoin (BTC) bulls are resilient. It is up 3.2 percent in the last week and surprisingly firm even after yesterday’s liquidation. Even so, it is likely that prices will trend lower in days ahead as BTC prices re-adjust in light of decreasing volumes over the last couple of days.

Note that our analysis depends on how fast Bitcoin bulls can reverse Feb 24 losses. A month later and buyers are yet to build enough momentum needed for a break and close above $4,500. Besides, when we paste a Fibonacci retracement of Feb 24 high low, yesterday’s sell-off is off the 61.8 percent level.

All the same, for bulls to be in charge as reiterated in previous trade plans, bulls must first close above $4,500 and float above $3,800 meaning every dip is a buying opportunity for risk-off traders.

Technical Indicators

Participation levels are low, and volumes are drying up averaging 7.4k by yesterday’s close. For bears to sail through, then they must convincingly close below $3,800, and that by extension means volumes must exceed Mar 16 of 13k or those of Feb 24 at 36k.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.