Markets
Bitcoin FUD is back. Will traders fall into the trap again as Mt.Gox’s rehabilitation plan is completed in the next 14 days?
Cryptocurrency markets have seen massive price action since the beginning of the month. The tokens started the monthly trade with a massive downtrend as selling pressure mounted. This was further compounded by some FUD attacks in the markets, such as the BTC transfers from Mt. Gox and the German government. Additionally, the sale of over 40,000 BTC created bearish waves in the markets.
Now that markets seem to have overcome the selling pressure, another horror is about to hit the crypto space. The widely known transfers from the infamous Mt. Gox exchange fiasco could have a similar impact on the markets. According to recent data from a popular on-chain platform, Arkham, $5.8 billion worth of BTC has been on the move since the start of trading.
The creditors reportedly received an email from the exchange saying that they have received the funds from Mt.Gox and it may take another 7 to 14 days to distribute them. The number of BTC that will be received has already been determined by the Trustee and will be distributed according to the instructions provided.
So, another Bitcoin FUD seems to be on the way as the price dropped by 3% on this news. The Mt. Gox situation could be an artificially created FUD that could force traders to sell their assets. However, studying past cycles, it seems that market makers have manipulated the Mt. Gox news several times and therefore this time it may not have a big impact as everyone may forget about this situation very soon, just like they forget about the FUD created after the Germans sold their BTC.