Mt. Gox unlocks, ETFs bleed, Strategy sells — short Bitcoin as selling pressure piles up
Three major sources of selling pressure are hitting Bitcoin at the same time: the collapsed Mt. Gox exchange just moved $739 million worth of Bitcoin (signaling imminent payouts to creditors who are likely to sell), investors have yanked $3.4 billion from Bitcoin ETFs over 11 straight days, and a major corporate holder just disclosed its first-ever Bitcoin sale.
Idea
When multiple independent sellers converge on Bitcoin at the same time, the price tends to keep falling. Mt. Gox creditors who have waited years for their money usually sell quickly once they receive coins. Meanwhile, the 11-day streak of money leaving Bitcoin ETFs is the longest since those funds launched — investors are clearly rotating out. Add in Strategy's first-ever publicized Bitcoin sale and you have a market where supply is ramping up while demand is pulling back. That's a recipe for further declines.