A massive Bitcoin sell-off by the Mt. Gox trustee has ensued panic in the market. As a result Bitcoin price dropped to below $9,000, after reaching $11,000 merely 48 hours ago. At the time of writing, Bitcoin has slightly recovered and is trading at $9,050, representing a market cap of $153 billion.
According to the official document released by the Mt. Gox trustee, a total of $404 million worth of Bitcoin and Bitcoin Cash have been sold over the past few months, at a price determined by the trustee, which is significantly lower than the current market value.
The document read:
“As a result of the consultation with the court, I considered it necessary and reasonable to sell a certain amount of BTC and BCC at this point and secure a certain amount of money for distribution resources, and thus, I sold the amount of BTC and BCC above. I made efforts to sell BTC and BCC at as high a price as possible in light of the market price of BTC and BCC at the timing of sale. I plan to consult with the court and determine further sale of BTC and BCC,”
In the next few months, the trustee intends to liquidate the remaining assets, which are approximately 166,344 Bitcoins, amounting to $1.7 billion at the current market rate.
Although, it is important to keep in mind this sell-off is not the only reason behind this crash. This week, SEC’s announcement added fuel to the fire. It