The last 48 hours has seen the price of Bitcoin drop drastically. From $10,600 two days ago to its current $8,300, this represents a whopping $2,300 drop in market price. This is a 20–day low. However, it should be noted that Bitcoin is not the only victim of this drop, as most of the other cryptocurrencies seem to have followed suit. This is especially so for the other top three; Ethereum, Ripple and Bitcoin Cash, which have dropped by 11%; the exact margin drop made by Bitcoin.
What May Have Caused the Drop?
According to analysts like WhalePanda, this may have been caused by the recent incident in which Mt Gox trustee had a sell-off. On the other hand, the market may have also been shaken by the controversy that stemmed from the trustee’s decision to use a cryptocurrency exchange to sell 40,000 bitcoins instead of using the over-the-counter (OTC) system.
With regards to this incident, WhalePanda had this to say:
Mt. Gox was terrible and the incompetent way they are handling is terrible, saying that Bitcoin has been crashing since all-time high because of it is just silly. It’s only’ 40,000 BTC. It is about the same as claiming that Tether caused the run to $20k. People love their narratives though.
Mt. Gox Trustee to Do Even More in Sell-Off
Despite the sale of 40,000 Bitcoins, Mt. Gox Trustee is still in the business and is likely to see another round of Bitcoin sell-offs. If the document released by Mt. Gox trustee is anything to go by, then this means over $1.7 billion’s worth of Bitcoin are due to hit the market in the near future.
Notably, cryptocurrency players are predicting that as long as Mt. Gox trustee goes on with its format of selling large amounts of Bitcoin through cryptocurrency exchanges instead of going the OTC way which offers buyers the chance to trade with each other, then Bitcoins’s value is yet to see its biggest dip in price. However, it is yet to be determined for sure if Mt. Gox trustee will dump such a large amount of Bitcoin on exchanges. Until then, the market is still rife for speculation.
What do you think about the recent drop in Bitcoin’s value? Is Mt. Gox trustee to blame for this development or there are other underlying market dynamics? Let us know your views in the comments below.