During past few weeks and months, Bitcoin and cryptocurrency shown drop in the market cap including price itself. There are many reasons for this outcome one of them including sells of Mt. Gox report from these couple of months.
Since last December, in which Bitcoin price surge around $19,800 and around in February the price soars to $6,000.
From past couple of months, some analyst believes that the market was in the red zone due to the Mt. Gox trustee sells off around total around 40,000 BTCs.
Mt. Gox Halts Bitcoin Selling Until September
Many of us already know about what happened to Mt. Gox bitcoin selling, which might be the major cause of bitcoin and other cryptocurrency price drops.
But for those who don’t know about the Mt. Gox case, was the exchange was hacked in 2014 with the majority of bitcoins were hacked and in the company had announced the hack of 850,000 bitcoins.
In order to pay the debts, The Mt. Gox trustee sold over 35,000 Bitcoin and 34,000 Bitcoin cash from the last year September.
The volatility of the market and the suffering could be explained by the fact of the demand and supply of bitcoin. If someone sells off a large amount of bitcoin (which holds a majority of the crypto market cap) then the price of the coin will drop significantly, due to the increase in volume.
The next court proceedings for Mt. Gox case is scheduled only after 18th September 2018. Therefore it was expected the halt of the bitcoin selling in the market, and the reduction of volatility could lead to price surging.
Image source: wikipedia
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