What is $ 1.7 billion? This is less than 1% of the total bitcoin capitalization.
Learn how this market works. Bitcoin's market cap doesn't represent the liquidity available on our incompetent exchanges. Even a $100 million dump can make sure this market is going to bottom badly. If this 'trustee' actually will continue selling $1.7 billion worth of Bitcoin, he will literally demolish the rate of each and every exchange he's dumping on. If he really continues to dump through like there is no tomorrow, he won't have any problems in tanking the market back to far under the $1000 level again. However, if there is at least some sense available, coins will not be dumped continuously, which should allow the market to partly recover again.