On September 16, a wallet that was idle for quite some time containing around $720 million in Bitcoin started to move funds via Bitfinex. A Reddit user online claims that the wallet is from a Silk Road personality who is most likely involved in dark web operations. The user under the alias of u/Sick_Slick mentioned that “It seems that the owner of a huge SilkRoad related wallet is moving funds actively since 3 days, dividing it in chunks of 100 coins by subwallets. The original wallet owned 111,114.62 BTC/BCH which is currently valuated $844M”. The user also added that the last movement was at 2014.
However, WizSec, which is a Japan-based security agency that discovered the money launderer behind the stolen funds from Mt. Gox, mentioned that the wallet is not related to Silk Road but rather connected to Mt. Gox. According to the agency, a whale investor who bought a massive batch of Bitcoin years ago is now starting to move the funds.
Why the Crypto Market Is Still On Its Way Down
We can expect that the bearish trend is still going to continue in the market. Mt. Gox is set to meet with creditors on September 26. This could enable liquidation of the Bitcoin stash that Mt. Gox has in order to pay its creditors. And with around $1 billion worth of Bitcoin and Bitcoin Cash in their wallet, it is said to be possible that Mt. Gox could drop Bitcoin to levels unseen in the last two years.
And it isn’t just Mt. Gox that could send the price of Bitcoin down. You also have the possibility that the CBOE sponsored Bitcoin ETF is going to be rejected by September 30th. The US Securities and Exchange Commission has declined a number of Bitcoin ETFs. Its hesitation is mainly based on the possibility of price manipulation. At this point, there it is quite possible that the SEC is going to say no to a crypto-related ETF.
However, if you are optimistic about the scenario, you may argue that the SEC already suspended two crypto-related products in order to stop confusing investors that it is an ETF.
Though many look at a Bitcoin ETF as inevitable, there are those who believe that a Bitcoin ETF is going to happen next year. There is a chance that the agency will be postponing its decision.
Is It a Good Idea to HODL?
According to Trace Mayer, thinks that there is a chance that it can reach $3K. Now, should you sell or should you hold on to your Bitcoin?
According to data compiled by market research newsletter Diar, there are long-term investors that are keeping their faith in Bitcoin. According to the report, “Over 87% of Bitcoins are stored in wallets that are above 10 Bitcoins ($60K+) – the total value just shy of $100 (billion) of the total market capitalization. These coins sit in only 0.7% of all Bitcoin addresses”.
Considering this reality, should you be keeping your Bitcoin too? Or maybe, you should be selling your Bitcoin this time around in order to minimize the losses that you have incurred especially in the last few months?