Speculation is growing that the trustees for the now-defunct Mt. Gox cryptocurrency exchange are getting set for another significant bitcoin sale.
On April 26, a website that tracks the Mt. Gox cryptocurrency wallets indicated that the trust had shifted a sizable portion of bitcoins and Bitcoin Cash from its wallet, which led many to speculate that Nobuaki Kobayashi, the head attorney for the Mt. Gox trust whoâ€™s been dubbed the â€œTokyo whale,â€ is set to unload another lot of the recovered coins.
â€œSome in the [cryptocurrency] community have been a bit worried about the recent movement of bitcoin out of the Mt. Gox settlement wallets,â€ wrote Mati Greenspan, senior market analyst at etoro.
â€œIndeed, it appears that Kobayashi has moved about 16,000 BTC out of cold storage, which may indicate that heâ€™s preparing to sell them on the open market,â€ Greenspan said.
Mt. Gox trust cryptocurrency balance
If the trustees were to proceed with a sale, it would be the first sizable transaction since the trust dumped nearly $400 million worth of bitcoin and Bitcoin Cash in March.
At current market value, the 16,000 bitcoins BTCUSD, +3.94% and 16,000 Bitcoin Cash are worth a combined $170 million and should the sale happen, onlookers will be scouting for potential price fluctuations.
â€œIf they are smart about it, it wonâ€™t have a material impact,â€ said Martin Garcia, managing director and co-head of sales and trading, at Genesis. â€œHowever, it all depends on the market at the time. If itâ€™s going up the market will absorb it easily.â€
Garcia added that if done over the counter, it would be possible for the transaction to be executed in a single block.