Bitcoin
Mt.Gox refunds to creditors could collapse the Bitcoin price
We have been pretty much excited about the last two weeks for the cryptosphere regarding price stability, a fact in which Bitcoin (BTC) has played a crucial role. The leader of the sector has managed to maintain above the mark of the 6,300 dollars, and this besides granting the coin with green numbers, has influenced as well a significant part of the market including Litecoin (LTC), TRON (TRX), Cardano (ADA) and others. However, recent news on the Mt.Gox case could potentially change the current panorama and turn it into a different story.
Concerning this, let’s recall Mt.Gox was a colossal exchange that had to declare on bankruptcy back in 2014, after the robbery of 700,000 BTC with pirate activities. The event caused a huge controversy back then as all of the creditors, both corporate and individuals, were left hanging by a thread as their funds were simply not reimbursed.
In this sense, a Tokyo court recently unlabeled the bankruptcy and now the institution at issue is preparing to refund creditors with all of the money that was stolen, a fact that could have a repercussion on Bitcoin’s price. Let’s see why.
From FOMO to FUD
If you have ever wondered how did Bitcoin manage to stay on the top for so long without even blinking in front of the plenty of other options that now exist, the answer is quite simple, Bitcoin knows how to create a bubble, more than anyone else.
The Bitcoin bubble is a phenomenon that despite the conditions of the market the crypto continues to have an increasing volume and even some highs at a certain level. And let’s recall that Bitcoin passed from being valued at just a couple of boxes to having a value of thousands of dollars, and this, in a teeny tiny period.
This is actually a thing not to be surprised by, as many companies that we know such as Apple passed from just a tiny value to being a multi-million dollar company as well. However, in the case of the crypto world, things are just a little different. For instance, we can name the FOMO phenomenon, FOMO means “Fear Of Missing Out”, the general trend of the crypto community.
The entire Bitcoin bubble has been built with an obvious FOMO, Bitcoin started to increase its value and as soon as it happened, the community started to feel the need to buy and retain the money with the hope of obtaining a way bigger earn than the initial investment later on. Truth be told, with Bitcoin we never know what the ceiling is, and a proof of that is the thousand of holders that decided to sell at $7, $300 or $2,000.
Like this, knowing the FOMO sensation, the question is, will Bitcoin always manage to keep this generalized trend in their community? Well, as FOMO exists so its counterpart, and that’s exactly what FUD is.
FUD means Fear Uncertainty and Doubt, one of the most common sentiments in the latest crypto community. Truth be told, it is actually hard to believe that Bitcoin would experience a FUD phenomenon, but that’s just because we always expect the leader to continue its growth.
But what will happen once 700,000 BTC would be paid to all of the MT.Gox creditors? One can be sure that Bitcoin price will collapse, people will start to have Fear Uncertainty and Doubt, and that is precisely what might break the price of the token to dramatic levels. Will another crypto make an appearance in the sector as the new ‘gold’, well, that remains a question. Stay tuned.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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