The past week has seen a great Bitcoin crash of nearly 12%, trading around $55,700 by noon on Monday. As per the experts, this Bitcoin Crash has been largely driven by increased on-chain selling activities.
Mt. Gox Repayments Spark Market Concerns
One major factor contributing to the recent selloff is the repayment efforts by Mt. Gox, the Tokyo-based exchange that went bankrupt a decade ago due to a hack. Reports indicate that approximately 47,228 Bitcoins have been moved from a Mt. Gox-associated crypto wallet to facilitate repayments to creditors, causing apprehension among investors and triggering further selling.
On top of this, the German government and the U.S. have transferred approximately $737.6 million of seized Bitcoin to various exchanges. This influx of Bitcoin into the market has led to a downward trend in prices.
Does Bitcoin Halving Have A Role?
The Bitcoin halving event in April, which reduced miner rewards by 50%, continues to impact market dynamics. While selling pressures have shown signs of upward trends recently, they still outweigh demand, contributing to the ongoing price decline.
Current BTC Status
Currently trading at $57,962.14, Bitcoin has a market cap of $1,143,002,369,471.
Potential for a Market Recovery
Despite the current challenges, experts believe that such kind of a Bitcoin Crash is not forever and anticipate a potential resolution in the market dynamics. Historical trends suggest that such periods of consolidation can make way for new waves of adoption, potentially pushing prices high in the future.
That’s all about the ongoing Bitcoin buzz!
Hope the next time you search for a piece of crypto-related news on ReadingCrypto, it’s not the one related to a Bitcoin Crash! 🙁
