Re: Analysis of halting trading

This is a fascinating development. Heres my analysis:

1) People pulled coins off of gox to sell on other exchanges or their wallets.
2) Fiat is now trapped in gox.

When gox open I expect minor selling followed by a hard buy. Why? Fewer coins on the exchange because theyve been moved and lots of fiat wanting to stoppes being trapped.

Sadly I suspect exactly the opposite to be true.

Care to explain why?

Unless MtGox were good at capital management they could have been under pressure from people withdrawing large quantities of fiat at the same time. They must have had huge inflows of cash over the last few weeks, but were they ready when that flow suddenly reversed?