Crypto Market Slumps Amid Concerns Over Mt. Gox Payout
The price of Bitcoin fell below $59,000 early Thursday, marking its lowest level since April, as concerns mounted over the potential impact of the defunct Mt. Gox exchange returning a significant amount of Bitcoins to its creditors.
Key Facts
- Bitcoin’s Decline: After maintaining a price above $60,000, Bitcoin dropped below $59,000, down more than 3.8% in the past 24 hours.
- Broader Crypto Market Impact: Other major cryptocurrencies also experienced declines. Ether fell more than 4%, dropping below $3,200, while Binance’s BNB, Solana, and Dogecoin fell 5.8%, 9%, and 6.5% respectively.
- Mt. Gox Payout Concerns: The slump is partly attributed to the administrators of the defunct Mt. Gox exchange beginning to repay its creditors in crypto tokens. The payout includes over 137,000 Bitcoins worth around $8 billion.
- Liquidation Fears: The large-scale repayment has raised fears that creditors might liquidate their returned crypto assets, leading to further price declines. Creditors will be repaid in Bitcoin (BTC) and Bitcoin Cash (BCH).
Surprising Fact
Analysts cited by Bloomberg also suggested that the U.S. presidential election’s uncertain dynamics might be influencing crypto prices. Concerns about Biden’s performance and calls for him to exit the race have led to speculation about a stronger Democratic candidate replacing him, which has unsettled the cryptocurrency market. Former President Donald Trump, who has recently presented himself as a pro-crypto leader, adds to this uncertainty.
