Bitcoin - further slide inevitable with Mt Gox claims payouts
More worrying news appeared on the horizon for Bitcoin (BTCUSD) bulls overnight with new developments in the MT Gox case. The firm was the huge Tokyo-based cryptocurrency exchange that was forced into bankruptcy in 2014 after losing BTC700,000 to cyber-criminals. Victims now have until October 22nd to file claims for damages, an event that could trigger huge payments of BTC back to creditors. Looking back to 2014, BTCUSD was still relatively cheap, ranging between $300 & $1,000. With BTCUSD currently trading around $6300, this still represents a considerable windfall to anyone who gets their Coin back, and the likelihood is that they’ll not pass up the opportunity to cash in against the obvious evidence of being in a clear downtrend. This can only accelerate the downtrend, and things are likely to get quite messy. Smart beneficiaries would sell this asset via off balance sheet methods because the closer they get to paydirt the lower the price will be.