Bitcoin and Ether and other cryptocurrencies plummeted in price: what caused it
Today, on July 5, the price of bitcoin has plummeted to a four-month low of $54,000. The reason is the activity of the wallet of the closed crypto exchange Mt Gox.
He writes UNN with a link Investing.
Over the past day, bitcoin fell by 8.5% to $54,092.3 thousand, the lowest level since March. Over the past seven days, the token has also fallen by more than 11%. The activity of the Mt Gox wallet scares bitcoin. Wallets associated with the now-defunct Mt Gox exchange have been spotted conducting test transactions, increasing concerns about the inevitable distribution of bitcoin by the exchange.
Last month, Mt. Gox liquidators announced that starting in early July, they will begin returning bitcoins to customers that were stolen in 2014. Traders speculate that those who receive these bitcoins will want to sell them, given that the price of bitcoin has grown exponentially over the past decade.
Such a scenario put massive pressure on bitcoin and led traders to start dumping tokens en masse, as well as to record high profits made so far in 2024. Prices of smaller cryptocurrencies tracked bitcoin's sharp drop, and uncertainty over the US presidential election and interest rates also contributed to weak sentiment toward cryptocurrencies.
The speculation that President Joe Biden may withdraw his candidacy for the Democratic Party in the 2024 elections has caused some uncertainty in the crypto markets, especially amid fears that Biden will be replaced by Trump, who has a negative attitude towards cryptocurrencies.
The cryptocurrency markets have largely lagged behind the stock market rally they usually follow. The world's second largest token, Ether, fell by 10.5% to $2,902.42. XRP, SOL, and ADA fell between 7% and 17%, and among the memes, SHIB and DOGE lost more than 16% each.
Recall
Earlier, due to the expectations of the distribution of tokens of the non-existent Mt Gox exchange, traders kept cryptocurrency markets in suspense.