Warning: Bitcoin Set For Black Swan Shock After Price Crash Of Ethereum, BNB, XRP, Solana, Cardano, And Dogecoin

Bitcoin and cryptocurrency prices struggled to maintain momentum after rising in the first week of July, thanks in part to surprisingly bullish data.

The price of bitcoin soared to over $22,000 per bitcoin — the highest since mid-June — before falling back amid a sudden surge of optimism. The price of ethereum and other top 10 cryptocurrencies BNB, XRP, solana, cardano and dogecoin also stagnated.

Today, after cryptocurrency billionaire Sam Bankman-Fried issued a market crash warning, cryptocurrency prices are braced for what some are calling an unpredictable and potentially serious “black swan” event as $3 billion in bitcoins suddenly hit the market. can flood.

Want to stay ahead of the market and understand the latest crypto news? Sign up now to receive the free CryptoCodex – a daily newsletter for traders, investors and crypto curious.

A black swan event is a rare or otherwise unexpected event 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 trustee of cryptocurrency exchange Mount 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 website. Nobauaki Kobayashi sent an email to creditors giving them the option to receive money 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 bring prices down… the drop could put other people off and we could see another drop.”

The implosion of Mount Gox in Tokyo after the loss of about 850,000 bitcoins in 2014 sent shockwaves through the burgeoning cryptocurrency market.

In 2018, when Kobayashi sold nearly 25,000 bitcoins from Mount Gox, then worth $260 million, it marked the culmination of the bull run from late 2017 that sent the price of bitcoin soaring to record highs. year saw a bear market that sent the price of bitcoin to a low of $3,000.

If the price of bitcoin experiences a similar drop from its peak of nearly $70,000 per bitcoin last year, it could fall well below $10,000.

The price of bitcoin has plunged by about 70% since its peak in 2021, pushing 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 decline triggered by the Federal Reserve’s decision to raise interest rates and end pandemic-era stimulus measures, has already been exacerbated by the collapse of the Terra blockchain, its stable currency USTUST
and its luna-backing coin, as well as the cryptocurrency lending crisis that has spilled over to brokers and hedge funds.

Many players in the bitcoin and cryptocurrency industry remain optimistic despite the sudden sell-off that saw billions of dollars in the value of the top ten coins, namely ethereum, BNB, XRP, solana, cardano and dogecoin.

Bitcoin saw positive momentum over the long weekend and has largely remained in the green this week. However, the area between $22,000 and $23,000 remains a challenge,” wrote Joe DiPasquale, the director of bitcoin and crypto hedge fund BitBull Capital, in email comments, adding that monetary policy tightening of what he believes is the most important immediate event for bitcoin is the Fed.

« The Federal Open Market Committee (FOMC) Meeting [de la Fed] at the end of the month remains the big event that is likely to bring volatility back to the market for now. †

💎 Open an account for free to invest in crypto!

Mint House allows you to easily invest in crypto assets. Creating an account is free and only takes a few simple steps.

📈 Trade cryptos online in just a few clicks!

BitPanda allows you to trade crypto online with ease. Creating an account is fast, free and very easy.

Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible in case of bad investments. Before using any third-party service, do your own research.

Thomas Estimbre
Latest articles by Thomas Estimbre (see all)

Leave a Comment