Mt. Gox Bitcoin Payout May Trigger BTC Crash To $20K
Key Points:
- Bitcoin’s price has dipped below $39,000, a decline attributed to institutional sales associated with recently launched ETFs.
- The upcoming Mt. Gox Bitcoin payout could potentially trigger a market crash if beneficiaries choose to sell.
Bitcoin fell below $39,000 due to ETF sales, market volatility, and a potential sell-off from the upcoming Mt. Gox bitcoin payout.
The price of Bitcoin has taken a hit recently, slipping below the $39,000 mark during the European morning trading hours. This is the lowest level the world’s largest cryptocurrency by market capitalization has reached since the start of December.
The factors contributing to this decline include institutional sales associated with the recently launched Exchange-Traded Funds (ETFs), which continue to exert downward pressure on the Bitcoin Price.
Bitcoin Price Slump: Factors Contributing to the Decline
Market analysts have been monitoring metrics for unrealized and realized profit and loss for short-term Bitcoin holders. Their findings reveal that more than half of the profits amassed by this group have been wiped out due to the falling prices.
The volatility in the crypto market has also led to an increase in total liquidations of leveraged crypto positions. In just the past 24 hours, these liquidations have crossed the $350 million mark.
A closer look at the liquidations shows that the majority involved long positions, which led to a loss of over $310 million. Short positions, on the other hand, accounted for only about $39 million of the total liquidations, as per Coinglass data.
Readmore: Mt. Gox Hackers Are Two Russian Nationals Stealing 647,000 Bitcoins
Mt. Gox Payout: Potential Trigger for a Market Crash
A significant factor contributing to the market uncertainty is the upcoming massive Mt. Gox Bitcoin payout, a Bitcoin exchange platform that went defunct.
According to WhaleWire, it is set to commence the distribution of 200,000 BTC to its creditors, a repayment plan that has been over a decade in the making. The value of this payout, over $7.8 billion, surpasses the combined value of Bitcoin holdings by MicroStrategy and El Salvador.
There is growing speculation that the beneficiaries of this Mt. Gox payout might choose to sell or take profits on their Bitcoin. This is considering that the value of their holdings has grown by a staggering 99,900% since the infamous “hack” in 2014.
If this happens, it could potentially trigger a monumental market crash, with Bitcoin prices potentially falling back under levels such as $20,000, a value that is still considered overvalued.
| DISCLAIMER:Â The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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Bitcoin
Mt. Gox Bitcoin Payout May Trigger BTC Crash To $20K
Key Points:
- Bitcoin’s price has dipped below $39,000, a decline attributed to institutional sales associated with recently launched ETFs.
- The upcoming Mt. Gox Bitcoin payout could potentially trigger a market crash if beneficiaries choose to sell.
Bitcoin fell below $39,000 due to ETF sales, market volatility, and a potential sell-off from the upcoming Mt. Gox bitcoin payout.
The price of Bitcoin has taken a hit recently, slipping below the $39,000 mark during the European morning trading hours. This is the lowest level the world’s largest cryptocurrency by market capitalization has reached since the start of December.
The factors contributing to this decline include institutional sales associated with the recently launched Exchange-Traded Funds (ETFs), which continue to exert downward pressure on the Bitcoin Price.
Bitcoin Price Slump: Factors Contributing to the Decline
Market analysts have been monitoring metrics for unrealized and realized profit and loss for short-term Bitcoin holders. Their findings reveal that more than half of the profits amassed by this group have been wiped out due to the falling prices.
The volatility in the crypto market has also led to an increase in total liquidations of leveraged crypto positions. In just the past 24 hours, these liquidations have crossed the $350 million mark.
A closer look at the liquidations shows that the majority involved long positions, which led to a loss of over $310 million. Short positions, on the other hand, accounted for only about $39 million of the total liquidations, as per Coinglass data.
Readmore: Mt. Gox Hackers Are Two Russian Nationals Stealing 647,000 Bitcoins
Mt. Gox Payout: Potential Trigger for a Market Crash
A significant factor contributing to the market uncertainty is the upcoming massive Mt. Gox Bitcoin payout, a Bitcoin exchange platform that went defunct.
According to WhaleWire, it is set to commence the distribution of 200,000 BTC to its creditors, a repayment plan that has been over a decade in the making. The value of this payout, over $7.8 billion, surpasses the combined value of Bitcoin holdings by MicroStrategy and El Salvador.
There is growing speculation that the beneficiaries of this Mt. Gox payout might choose to sell or take profits on their Bitcoin. This is considering that the value of their holdings has grown by a staggering 99,900% since the infamous “hack” in 2014.
If this happens, it could potentially trigger a monumental market crash, with Bitcoin prices potentially falling back under levels such as $20,000, a value that is still considered overvalued.
| DISCLAIMER:Â The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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