Crypto braces for $2.7 billion ‘Black Swan’ in September after $1 trillion Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin price crashes
Bitcoin
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The bitcoin price, deep in a 70% decline from its all-time high, last fell below $20,000 in July – and erased all of its gains in August (although some suddenly think it’s the right time to buy bitcoin). Meanwhile, the ethereum price is crashing against its own earthquake and other top ten cryptocurrencies – including BNB
Now, bitcoin, ethereum and other major cryptocurrencies could be heading into a difficult September with a looming so-called “black swan” event, ethereum’s major upgrade and another Federal Reserve interest rate hike increasing pressure on a crumbling crypto market.
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A crypto “black swan” event could happen in September, potentially leading to further price drops … [+]
In September, nearly $3 billion worth of bitcoin could suddenly flood the market as 137,000 bitcoin lost by the once-dominant Mt. Gox bitcoin exchange is being returned to investors. Mt. Gox filed for bankruptcy in 2014 after losing 850,000 bitcoins due to fraudulent withdrawals.
The refund has previously been named as a potential bitcoin black swan – a term used to describe a very rare or otherwise unexpected event – that could have a large effect on the bitcoin price and could weigh on ethereum, BNB
This week, unfounded rumors swirled on social media that Mt. Gox’s trustee could immediately release some of its recovered bitcoin to creditors, exacerbating a bitcoin price crash. Debate has raged on social media about “how many of these original investors are sitting on a 50x
On top of fears that $2.7 billion worth of bitcoin could be flooding the market (up from just $540 apiece when Mt. Gox collapsed), traders expect the US Federal Reserve to continue its hawkish monetary policy program with another giant interest rate increase in September. On Friday, Federal Reserve Chairman Jerome Powell warned traders not to expect a quick end to rate hikes.
“The volatility that has become so characteristic of the digital token space shows no signs of abating,” analysts at Bitfinex bitcoin and crypto exchange wrote in emailed comments, calling bitcoin’s price drop in the wake of Powell’s comments a “hair-trigger response. “
Meanwhile, ethereum’s looming merger upgrade — scheduled for mid-September and designed to start the network’s transition from energy-intensive proof-of-work to greener proof-of-stake — is also expected to reduce fees and improve transaction times. – creates uncertainty in the market.
“The month started with optimism as market participants prepare for the ethereum merger, but all indices [have] declined … as we approach the end of August,” Vijay Ayyar, Asia vice president at crypto exchange Luno, wrote in an email, adding that ethereum “has underperformed against all the major cryptocurrencies.”
The Ethereum price is currently down around 25% from its peak in August.
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The Bitcoin price has erased all of its August gains this week, pulling down the price of Ethereum, … [+]
Looking ahead to September, most analysts and market watchers are bearish on bitcoin, ethereum and other major cryptocurrencies.
“Given where the market is going now, it’s hard to see broad sentiment going back to the 2021 bullish anytime soon,” Swarm Markets co-founder Timo Lehes said in an emailed comment.
“While the merger certainly creates traction with investors, other headwinds still exist, such as regulatory pressures, more macro concerns and interest rate hikes, plus other ‘black swan’ events, such as the Mt. Gox bitcoin dump.”
