Sold In Massive Amounts – Cryptocurrency Valued at $18 Million
Authorities in Germany seized a large amount of digital currency including 1,312 Bitcoins (BTC), 220 Ethereum (ETH), 1,312 Bitcoin Gold (BTG), and 1,399 Bitcoin Cash (BCH). The authorities began seizing these cryptos back in February 20th, 2018. Now, it has been reported that large portions of the seized currency is being sold off. Investigation into the liquidation process indicates that BTC was valued at roughly $11,700 at the time of the massive selloff, which equates to over $15.3 million.
Meanwhile, at the same time, Bitcoin Cash price was over $1,500 on February 20th, suggesting that the amount of BCH sold off was valued at over $2.1 million. If sold around the same dates, approximately $200,000 of ETH and $185,000 of BTG could have been liquidated. In total, this would amount to nearly $18 million worth of cryptocurrency having been sold off.
Crypto Charts Suggest Large Amounts of Crypto Sold Led to Bearish Market
Examining the crypto market charts around February 20th shows that there appears to be a downward trend and according to reports the selloff of this massive amount of cryptocurrency was carried out through roughly 1,600 different transactions over a period of two months. It is estimated that German authorities liquidated or sold about $14 million through the sale of these digital currencies.
There is now speculation that this massive selloff could have impacted crypto market prices. That’s because if the market participants begin to sense any pattern of “panic selling” which is often mixed with FUD (fear, uncertainty, doubt), then that usually leads to further decline in the price of most cryptocurrencies because other big holders of crypto also begin liquidating their digital assets. This, leads to even larger amounts of digital currency being sold, like a domino effect.
Mt. Gox Adds Fuel to the Fire
In addition to the selloff reported above, the Mt. Gox trustee moved 16,000 BTC and 16,000 BCH, followed by even more consolidation of a large amounts of digital currency to a single address. Even though there might not be actually any crypto being sold, whenever the Mt. Gox trustee moves around large amounts of crypto, it usually also sends shockwaves throughout the volatile cryptocurrency market. If we combine the effect of both massive amounts of crypto being sold by German authorities and the actions of the Mt. Gox trustee, then it can be argued that it could have contributed to the bearish market at present.
Volatility in the crypto market, mainly that of Bitcoin (BTC), is now also being compared to Cboe’s volatility index – VIX. Brian Stutland at Equity Armor Investments told CNBC recently that Bitcoin, just like VIX, can now be used to assess market volatility and fear in the traditional financial markets. There is, according to the Managing Member of Equity Armor, a significant correlation between the trading patterns of the flagship cryptocurrency and VIX. He adds that people could be using cryptocurrencies as a way to “sort of de-risk yourself from credit risk in the banking industry.”
DISCLAIMER: This article is not meant to influence an investment related decision. It’s purely for informational purposes and to help spread awareness about cryptocurrencies.