Why the Bitcoin bottom may come in August
We may not have seen the latest Bitcoins (BTC) big downward move … but we can be close.
It’s a kind of “storm”, but I have not seen many people in the cryptosphere talk about it, and I have certainly not seen it on mainstream media channels.
This is something I think everyone should be prepared for, because I think it may represent the last great opportunity we are going to see in one long time to average dollar cost of Bitcoin at bottom prices.
In fact, this option can present itself in any kind of cryptor we want to own.
Let me unpack the story so you can understand what is happening and how you can be able to take advantage of what can be a wonderful opportunity.
Some (very) old chickens come home to rest
Back in 2014, in the Stone Age of Bitcoin, the Tokyo-based Mt. The Gox Stock Exchange the large crypto exchange. I simplify, but Mt. Gox was in a way like the coin base of its time. In 2014, it handled something like 70% of all Bitcoin transactions worldwide …
… until it suddenly and unexpectedly collapsed.
It applied to Japanese courts for some sort of bankruptcy protection, due to (probably) the theft of nearly 850,000 BTC from Mt. Gox’s hot wallet. 750,000 of these Bitcoins belonged to customers, while 100,000 belonged to Mt. Gox.
To put it in perspective, around 7% of all Bitcoins existed at the time, and these tokens were worth “only” $ 473 million at February 2014 rates. Today, these 850,000 BTC make up 4.4% of the total offer, but they are worth more than $ 18 billion.
Later in 2014, Mt. Gox almost 200,000 BTC from an old digital wallet before 2011, which brought the number of Bitcoin in question down to 650,000.
Here’s the thing: Like black college kids checking the couch cushions for replacement, professional search and computer work with a white hat has recovered around 200,000 more stolen BTCs from Mt. Gox hijacker.
Mt. Gox is preparing to return these 200,000 Bitcoins to creditors – you guessed it – next month.
We have some precedent to look at to find out what we can expect – and I expect it to be interesting.
This can be a bestselling catalyst
When the first tranche of 200,000 coins was returned after 2014, an executor sold 24,000 of them at the market peak in 2017, when Bitcoin was worth around $ 19,000, but before it crashed 85% to $ 3,000. This was not the only reason for the collapse … but it certainly helped accelerate it.
So it’s as likely as not that when this 200,000 BTC batch is returned to its rightful owners, they will sell – and quickly. It would be $ 3 billion worth of sales pressure hitting a market that is already sweating.
Of course, there is a chance that these creditors are playing the long game; they may be down on “HODL”, but remember their The average price per Bitcoin is around $ 300 and they are up by more than 6200%.
Forget the sleepy dog days – this August can be very exciting for Bitcoin investors. Not only will we get the chance to average dollar cost at some of 2022’s lowest prices, but that sale – if it happens – could lead to a capitulation and an investable bottom. It makes good sense to get ready.
The main point is that the current downturn in the crypto market is an opportunity, not a crisis. This is the perfect time for investors to establish or strengthen their positions in digital assets.
But you do not just take my word for it.
In fact, a Wall Street insider – known for being a conservative investor – is even more bullish on Bitcoin than I am. For a long time he was a big crypto-skeptic, but now he says that it is the best investment opportunity that has been in the last 30 years.
Skybridge Capital’s Anthony Scaramucci has a bold Bitcoin price prediction that has made headlines, and you can see it here, along with his advice on what every American should do right now …
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