“The [Fed’s] The Federal Open Market Committee (FOMC) meeting at the end of this month remains the major event for now that could re-introduce market volatility. “
Bitcoin: Decoding if another Black Swan event is on the way
The global crypto market value on July 11 was $ 914.71 billion, down 3.6% in the last day. On the other hand, the total crypto market volume was $ 55.15 billion with a decrease of 2.25% in the last 24 hours.
Now, with the broader market under selling pressure, the latest news coming out of Mt. Gox sent shock waves over crypto skeptics and enthusiasts.
Flash from the past
The imploded cryptocurrency exchange Mt. Gox posted an update on its website with the intention of paying its creditors. Bankruptcy trustee Nobauaki Kobayashi sent an email to creditors giving them the opportunity to receive the funds in US dollars, Bitcoin or Bitcoin Cash, a fork of Bitcoin.
The Tokyo-based crypto exchange was the world’s largest Bitcoin exchange in 2014 before losing 850,000 BTC. The implosion sent shock waves over the crypto ecosystem, which was still in its infancy.
Especially in 2018, Mt. Gox 25,000 BTC worth around 260 million dollars, which led to a multi-year bear race. During this bear market, the price of BTC fell to $ 3,000 after rising to the all-time high (ATH) of $ 20,000, according to Forbes.
Now Mt. Gox is looking to sell up to 150,000 BTC worth almost $ 3 billion. The flooding of these reserves could scare investors and cause further R & D in the market. In this regard, crypto investor Aaron Brown told Bloomberg that,
“It will not be a significant fraction of the total trading volume for Bitcoin, but it may push prices down. The downturn may scare others, and we may see a further decline.”
Joe DiPasquale, CEO of BitBull Capital, presented another looming threat to the crypto industry in an email.
Sam Bankman-Fried, CEO of FTX, also warned about “empty products” in an interview with CNN. He said,
“When you have something that is basically an empty product, which is true for some places and assets in crypto, it is something that definitely has a real crash potential. By market value or volume, a fairly small fraction of the crypto ecosystem represents this; but after number of assets, it is a significant fraction. “
Well, in the middle of Bitcoin’s recent fall, and while Mt. Gox is preparing to make refunds, it seems that another Black Swan event is under scrutiny. Not to forget, the ‘black swan’ stands as a metaphor that suggests an event that comes as a surprise and has a great effect. Now only time can reveal what awaits the royal coin.
