Opinion: The oversupply in the market may continue to depress BTC prices

The cryptocurrency market may have to deal with potential turbulence in the coming months, as several major Bitcoin (BTC) holders - including defunct exchanges and government entities - may liquidate their substantial assets. Cryptocurrency data provider Kaiko's latest report shows that the crypto market is currently facing a serious oversupply problem. This has been a recurring theme throughout the summer, with forced sell-offs and bankruptcy liquidations of crypto assets causing selling pressure at different stages from May to August. Dragonfly general partner Rob Hadick said that this summer, Bitcoin prices faced tremendous pressure, mainly related to Mt. Gox issuance, yen arbitrage trading and slowing demand. "The market is still worried about the pressure brought by government holdings and additional issuance of Mt.Gox," he said.

One of the main sources of market anxiety is the ongoing redistribution of funds to Mt.Gox creditors. The bankrupt cryptocurrency exchange still holds more than 46,000 bitcoins worth over $2 billion which will eventually be redistributed. Fideum co-founder Darren Franceschini stated when explaining the potential impact of this distribution that according to predictions these Bitcoins worth over $2.7 billion could almost all be sold off - if creditors sell all their held Bitcoins it could add an extra selling pressure of $8.2 billion.

Other major holders may also intensify selling pressures in near future such as US Government holding Bitcoins valued over $2 Billion dollars . In addition , he added countries like UK , China & Ukraine also hold large reserves of Bitcoin . Bartosz Lipiński CEO Cube.Exchange says “If authorities start mass liquidation its held cryptocurrencies then 'Christmas bounce' often seen by many Crypto enthusiasts might not happen for first time this year.”