The Crypto Silver Lining
In the short-term, the price of Bitcoin is at the mercy of the macro events, and throwing fuel on the fire is the rumor on many prominent social media platforms circulating of the return of Mt. Gox funds which were due for release to creditors on Aug. 28.
This unsubstantiated claim would drop a bucketful of liquidity onto the market suppressing the price of crypto in the short term.
Claims varied widely at the time of writing, with some believing that a tranche of 137,000 BTC was set for release in one go. Others said that funds would be sent piecemeal, but that payouts would nonetheless begin this weekend.
Mt. Gox shuttered 10 years ago and following a lengthy legal procedure, the appointed rehabilitation trustee, Nobuaki Kobayashi, announced on July 6 that he was "preparing to make repayments" to creditors.
In documentation at the time, Kobayashi gave “the end of August” as a reference period during which some initial payments might begin.
The kneejerk reaction was most likely premature, but the evidence of added liquidity will be evident to the market pricing whenever the event occurs.
Lately, Bitcoin and crypto have been faced with a barrage of negative news and it’s almost like Groundhog Day.
The aggregation of these events is evident that Bitcoin hasn’t found a bottom yet.
One of the most prominent Bitcoin cheerleaders was in the news for all the wrong reasons.
Former CEO of MicroStrategy Michael Saylor is getting sued for not paying income taxes.
The lawsuit alleges that Saylor has resided in the District of Columbia for more than a decade without paying DC income taxes. The suit says he avoided income taxes by fraudulently claiming to be a resident of other, lower-tax jurisdictions.
Saylor, who recently stepped down as the CEO of MicroStrategy, said in a statement that he moved his home to Miami Beach from Virginia a decade ago.
The lawsuit also named MicroStrategy as a defendant, accusing the Northern Virginia-based company of collaborating with Saylor to dodge taxes.
It’s unfortunate that the biggest media face in crypto is slowly evoking the image of a charlatan.
Saylor resigning from MSTR can also be viewed as his quitting bitcoin or cashing out before it gets bad.
When the tide comes in, we see who is swimming naked.
Crypto has shown itself to be a marginal industry unprepared for show time.
It has a lot of mending to do from the exchanges, infrastructure, and trust.
It will take time before Bitcoin gets its time in the sun, but for now, it will unequivocally position itself at the end of the spectrum for all risk assets just below unprofitable and undesirable tech stocks.
That’s not a great position to be in, but I do believe if the industry can hang on until interest rates start to reverse, the backdrop starts to turn from unfavorable to favorable.
