The cryptocurrency exchange Mt Gox has moved 16,000 bitcoins out of its wallet to an address that may be associated with an exchange desk.
Selling this many Bitcoins at once, which are currently valued at over £100 million, could prove disastrous for the value of the cryptocurrency. Supply of the currency would be flooded, and in the absence of a comparable rise in demand the price is likely to fall.
Mt Gox was formerly one of the world’s biggest cryptocurrency exchanges before the loss of 1 million of its customer’s Bitcoins forced it to close in 2014.
This is the first time the exchange has moved any of its assets in three months, reports The Next Web, which first spotted the latest transfer. The last time it decided to sell off its funds, a massive price shock followed.
An influential Bitcoin wallet
With these assets yet to be sold, some are reporting that any sale attempts would be blocked.
The value of every currency worldwide is affected by how many people are buying and selling it at any given time. The difference with Bitcoin, however, is that the currency is believed to be overwhelmingly concentrated in the hands of just 1,000 investors, who reportedly own 40% of the total amount of the currency.
These investors have the power to exert a massive influence on the market, as other holders of the currency attempt to get out ahead of any big price changes.
With a sale yet to be confirmed, it’s difficult to know how significant any subsequent price shock could be, but it’s yet another reminder of the dangers of investing in cryptocurrencies.
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