Bitcoin and cryptocurrency prices struggled to maintain momentum after surging during the first week of July, in part thanks to surprisingly bullish data.
The price of bitcoin soared to over $22,000 per bitcoin — its highest since mid-June — before falling back amid a sudden wave of optimism. The price of ethereum and other top 10 cryptocurrencies BNB, XRP, solana, cardano and dogecoin also stalled.
Today, after cryptocurrency billionaire Sam Bankman-Fried issued a market crash warning, cryptocurrency prices are braced for what some have called an unpredictable and potentially serious “black swan” event. because $3 billion worth of bitcoins could suddenly flood the market.
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A black swan event is a rare or otherwise unexpected occurrence that has a profound effect – with…. [+] bitcoin and cryptocurrency prices including ethereum, BNB, XRP, solana, cardano, and dogecoin are particularly vulnerable to such shocks.
This week, the bankruptcy trustee of cryptocurrency exchange Mt. Gox, once the world’s largest bitcoin exchange, announced that the company was preparing to pay off some of its creditors, according to a letter posted on its site. website. Nobauaki Kobayashi sent an email to creditors giving them the option of receiving funds in US dollars, bitcoin or bitcoin cash, a fork of bitcoin.
The redemption could mean that up to 150,000 bitcoins – which are currently worth some $3 billion – are about to flood the cryptocurrency market. Cryptocurrency investor Aaron Brown told Bloomberg, “It could push prices down… the drop could scare other people off and we could see another drop. »
The implosion of Tokyo-based Mt. Gox following the loss of around 850,000 bitcoins in 2014 sent shock waves through the nascent cryptocurrency market.
In 2018, when Kobayashi sold nearly 25,000 bitcoins from Mt. Gox, then worth $260 million, it marked the peak of the late-2017 bull run that pushed the price of bitcoin to all-time highs. around $20,000 and led to a multi-year bear market that sent the price of bitcoin to lows of $3,000.
If the price of bitcoin experiences a similar decline from its peak of nearly $70,000 per bitcoin last year, it could fall well below $10,000.
The price of bitcoin has collapsed by around 70% since its peak in 2021, dragging the price of the first ten … [+] cryptocurrencies ethereum, BNB, XRP, solana, cardano and dogecoin.
The $2 trillion bitcoin and cryptocurrency crash, which comes on top of the stock market rout triggered by the Federal Reserve’s decision to start raising interest rates and end measures pandemic-era stimulus, has already been exacerbated by the collapse of the Terra blockchain, its stablecoin USTUST
and its luna backing coin, as well as the crisis in cryptocurrency lending companies that has spilled over to brokerages and hedge funds.
Many players in the bitcoin and cryptocurrency industry remain optimistic despite the sudden sell-off that saw billions of dollars off the value of the top ten coins, namely ethereum, BNB, XRP, solana, cardano and dogecoin.
“Bitcoin saw positive momentum over the long weekend and remained largely in the green this week. However, the area between $22,000 and $23,000 remains a challenge,” wrote Joe DiPasquale, the managing director of bitcoin and crypto hedge fund BitBull Capital, in emailed comments, adding that the monetary policy tightening of the The most important immediate event for bitcoin, he said, is the Fed.
« The meeting of the Federal Open Market Committee (FOMC) [de la Fed] at the end of the month remains for the moment the big event likely to introduce volatility again on the market. »
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