The post Bitcoin Maxi Hints What Comes Next After Germany, Mt Gox Selloff appeared on BitcoinEthereumNews.com.

One Bitcoin (BTC) maxi has weighed in on the potential outlook of the crypto market after the selloff scare from the German government and defunct cryptocurrency exchange Mt.Gox. Bitcoin Market to Normalize in Two Months  Renowned investor Fred Krueger took to X to share what he described as “Thought experiment” on Bitcoin. He started by recalling when Bitcoin was still trading around $65,000. According to Krueger, this coincided with the period when it became apparent that Mt.Gox sales and Germany dumping would take place in the next 30 days. Based on the assumption that both sales will generate $4 billion and that they would be done gradually at 40x multiplier, the Bitcoin proponent assumes that BTC will record up to $160 billion loss in market capitalization. Thought expirement. We were at 65K and it became clear that the Mt Gox sales and Germany sales would happen in the next 30 days. Lets assume 4 Billion between both happening in July. If this would be done gradually, at 40x multiplier, that is 160 Billion in market cap, or… pic.twitter.com/vgUKJHo566 — Fred Krueger (@dotkrueger) July 5, 2024 This could also mean an 8% drop in BTC price, bringing it down to $59,000 from the initial $65,000. Krueger raised another assumption about $4 billion in speculative shorts moving in to capitalize. In his words, “they short in Futures. Again, if this was slow, deliberate move it might move things to 59K. But it’s not. It’s a concentrated, manipulation designed to create panic. We get double that move, down to 53K.” Furthermore, he noted that some traders could bag massive profits from short-term holders who panic upon the release of these Bitcoin units. Also, the second group that could draw in more profits for traders are the Mt.Gox holders who sell after the reimbursement.…

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Filed under: News - @ July 6, 2024 1:00 am