The mighty sell off…

What a time to be in crypto as we witness one of the last (and largest) sell-offs before the official bull market kicks off!

Some are experiencing panic. Others are rubbing their hands together with excitement!

So what’s really going on with the market? And should you be concerned?

Let’s dive in and find out.

Mt. Gox distributions 

Mt. Gox was a popular Bitcoin exchange that dominated the market from around 2010/2011. At its peak, the exchange was processing over 70% of all Bitcoin transactions globally. But in 2014 it fell victim to one of the most notorious crypto hacks at that time – in just one day, 740,000 Bitcoins vanished. Mt. Gox was forced to file for bankruptcy, kicking off a long legal battle as users fought to reclaim their lost funds.

Now, the time has come for investors to be recompensated.

There are concerns about the impact on the market, but here’s what people are forgetting about this event:

The Mt. Gox distribution will happen in phases, not all at once, and they include payments to crypto exchanges and credit funds, not just individual investors. There are early payments happening now (71,403 BTC), but final payments won’t be made for potentially years down the track. Which means fears around the market being flooded with freshly sold Bitcoin are largely unfounded.

There’s a great Twitter post from Ash Crypto that dives into more numbers here https://x.com/Ashcryptoreal/status/1809095695128797475

Now, I know what you’re thinking.

So why the sell off? 

Put simply, a lot of it comes down to overreaction (yes, I said it!).

From the outside looking in, the general public might assume this recent dip is because existing Mt. Gox holders are now selling off their crypto. But this is not the case. Surprisingly, the dip is also partly due to everyday investors who weren’t even involved in Mt. Gox to begin with! These investors are getting caught up anticipating a worst-case scenario and panic-selling some of their holdings. A classic example of the power of sentiment and human emotions.

But here’s what they don’t understand.

Selling right now would be a HUGE mistake. 

We are literally months (if not weeks) from the start of the next major crypto rally and in my opinion, the discounts we see now will be short lived. This is why long-term investors are secretly accumulating top cryptos in the hundreds of thousands! We are being served some of the best discounts across the board for those with eyes to see.

Now let’s talk about the distribution timeline.

Approximately 142,000 recovered BTC will be returned to investors, with 71,403 BTC being distributed between now and October.

And October is very interesting timing!

You see, cyclically speaking, November 2024 marks the start of the official bull market. However, based on the bullish catalysts lining up, investors are expecting this to potentially happen sooner.

Are you seeing the alignment here?

This is why savvy investors are rubbing their hands in glee!

If you aren’t in the market yet, I believe now could be your last chance to capitalise on cheap cryptocurrencies, especially crowd favourites like Bitcoin, Ethereum and Solana (and let’s also include meme coins like Doge and Pepe).

In other words, the slingshot of this bull market is pulled back and ready to go!

My view? The Mt. Gox ‘sell off’ is giving us one of the most exciting and opportune dips we could have hoped for – and right before we launch into the next major market rally. This is a unique chance to add to your portfolio and position yourself for success, because moments like these don’t come around often.

Which brings me to the next point.

German government and Bitcoin  

The other event causing market movement is the selling of 46,000 BTC from the German government. These funds were seized from a movie piracy website and are being sold on the open market.

Some are worried that, when combined with Mt. Gox, the market is going to tank.

There are lots of opinions about this one! But let’s look at some numbers.

Hypothetical worst-case scenario 

If we took the worst-case scenario, which is the total combined value of both the German government and Mt. Gox being sold on the same day, this would represent a maximum of around 30% of Bitcoin’s daily global trading value.

This is the maximum carnage that could possibly take place if it all got sold at once.

Given the phased distribution of Mt. Gox funds, and the fact that too many smart investors would never sell right before the bull market is about to take off, it’s safe to say this scenario would never eventuate.

The reality is, the dip we’re seeing is more about sentiment, lack of confidence and over-reaction as opposed to actual structural damage. Bitcoin has already pulled back 26% from its June high, so the market is front-running the impact.

One other thing worth mentioning.

The FTX estate has approximately $16B (cash) that will be returned to investors over the coming months. This is money that will very likely be re-invested into cryptocurrency. This value is similar in scale to the combined value of Mt. Gox distribution and the German government holdings.

So, while prices have temporarily dropped, the sky is far from falling.

If you’re ever in doubt, feel yourself getting pulled into FUD narratives or have concerns about dips in the market, I encourage you to connect back with the undeniable bullish catalysts for this crypto bull run:

• The Bitcoin and Ethereum ETFs will absolutely propel the market to new heights. We saw what happened with Bitcoin ETFs – they blew every prediction for trading volume out of the water. The barriers have come down and institutions and their clients are flooding in, bringing trillions of dollars of capital with them.
• The post-having supply shock is in effect and Bitcoin is now the scarcest asset on the planet, above Gold. Very soon we will see diminishing supply collide with unprecedented demand, causing the prices to skyrocket.
• The US Election year promises to bring even more positive price action, if history is anything to go by. There’s been a significant shift in the political and regulatory approach from both Democrats and Republicans. Both parties know that if they want to secure younger voters, they need to be more friendly toward crypto.

Any one of these bullish factors is exciting, but when you combine them, it’s undeniable that this bull market is going to be a popcorn event like no other! While some will represent what’s happening as a bloodbath, the opportunity for the savvy investor is exceptional.

I believe that once this bull market really kicks off, we won’t see prices this low for a very long time. I’ve said before that 2024 and 2025 are going to be extraordinary times. Everything is right on track.