Bitcoin was trading at $56,377 on CoinMarketCap. This is the first time in recent months that Bitcoin has fallen so much. Even Ether is not able to remain untouched by this decline. Its price is seeing a steady decline but it can be said that it is much less than bitcoin. Ether was also down 20.83 percent at $3,622. The major fall in the two most valuable cryptocurrencies had an impact on other crypto tokens as well. Ripple, Polkadot, USDCoin, Dogecoin and Shiba Inu also saw a significant reduction in prices.
Why is the price of bitcoin falling?
The reasons for the fall in the price of bitcoin cannot be predicted precisely, but market analysts can still make some guesses. According to a report published in Hindustan Times, John Iadeluca, founder of multi-strategy fund Banz Capital, told Forbes that bitcoin is being moved from many very old wallets. This has created rumors and apprehensions for investors. Observers are now trying to figure out what the movement means to bitcoin from the old wallet. Efforts are also being made to find out whether there will be a large sale of bitcoins from these old wallets in the near future as well.
There is also anger among investors about Japan-based bitcoin exchange Mt Gox. It was once known as the world’s largest bitcoin intermediary. It has handover over 70 percent of all its transactions worldwide. The exchange was closed and trading ceased in 2014. Liquidation proceedings to pay back their customers are still not resolved.
A bankruptcy protection scheme that promised billions of dollars in compensation in bitcoin was accepted last month by nearly 99 percent of Mt Gox’s creditors. However, fears are still high that if creditors, who will now receive more than 140,000 units of bitcoin, sell their holdings, this will naturally put downward pressure on the price of bitcoin, driving its price further down.
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