Bitcoin is now equipped for a ‘Black Swan’ shock after $ 2 trillion Terra Luna led Ethereum, BNB, XRP, Solana, Cardano and Dogecoin price crash

BitcoinBTC
and cryptocurrency prices have struggled to maintain momentum after rising through the first week of July, in part due to some surprising bullish data.

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The Bitcoin price climbed to over $ 22,000 per bitcoin – the highest since mid-June – before falling back amid a sudden surge of optimism. The Ethereum Prize and other top ten cryptocurrencies BNBBNB
XRPXRP
solana, cardano and dogecoin have also stopped.

Now, after cryptocurrency billionaire Sam Bankman-Fried issued a serious market crash warning, cryptocurrencies are gearing up for what some have called an unpredictable and potentially serious “black swan” event as $ 3 billion in bitcoin could suddenly flood the market.

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This week, the trustee in bankruptcy of the collapsed cryptocurrency exchange Mt. Gox, once the world’s largest bitcoin exchange, said the company is preparing to repay some of its creditors, according to a letter posted on the website. Nobauaki Kobayashi sent an email to creditors giving them the opportunity to receive the funds in US dollars, bitcoin or bitcoin cash, a fork with bitcoin.

The payback could mean that up to 150,000 bitcoins – currently worth around $ 3 billion – are about to flood the crypto market with crypto investor Aaron Brown telling Bloomberg “it could push prices down … the downturn could scare someone else and we could see a further fall.”

The implosion of Tokyo-based Mt. Gox after the loss of around 850,000 bitcoin in 2014 sent shock waves through the burgeoning crypto market.

In 2018, when Kobayashi sold nearly 25,000 of Mt. Gox’s bitcoin, then worth $ 260 million, marked the peak of the late bull run in 2017 that pushed the bitcoin price to unprecedented heights of around $ 20,000 and led to a multi-year bear market that sent the bitcoin price to its lowest level. at $ 3,000.

If the bitcoin price sees a corresponding decline from the top of almost 70,000 dollars per bitcoin last year, it may fall well below 10,000 dollars.

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The $ 2 trillion Bitcoin and cryptocurrency crash, which came with a stock market crash triggered by the Federal Reserve’s decision to start raising interest rates and end stimulus measures from the pandemic, has already been exacerbated by the collapse of the Terra blockchain, its USTUST
stablecoin and its support currency luna as well as a crisis with crypto loan companies that have spread to brokers and hedge funds.

Many in the bitcoin and crypto area remain optimistic despite the sudden sale that has removed billions from the value of the top ten coins ethereum, BNB, XRP, solana, cardano and dogecoin.

“Bitcoin saw positive momentum over the long weekend and has remained largely green this week. However, the zone between $ 22,000 and $ 23,000 remains a challenge,” wrote Joe DiPasquale, CEO of bitcoin and crypto hedge fund BitBull Capital, in email comments. , and adds that the Fed’s monetary tightening is, in his opinion, the most important event on bitcoin’s immediate timeline.

“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. “