Yes just like you, I woke up to meet the red candlesticks. Just as I was about to scream, I got a notification from my coingecko, all thanks to Mt. Gox exchange and Germany Friday is red, I whispered.
See Also: Breaking : Mt Gox Nears $9B Bitcoin Payout
What Did Mt. Gox and Germany Do
The Bitcoin market is currently under considerable strain due to two major events. The first is the imminent repayment of nearly $9 billion worth of Bitcoin to users of the bankrupt Mt. Gox exchange, which has been entangled in legal disputes for a decade. The second factor is the liquidation of seized Bitcoin by German authorities.
Mt. Gox, once the premier Bitcoin exchange, collapsed in 2014 after a catastrophic hack that resulted in the loss of 850,000 BTC. Creditors have since been involved in prolonged legal battles to recover their funds.
Recently, progress has been made in these bankruptcy proceedings, with creditors set to receive a portion of their Bitcoin holdings.
However, this anticipated selloff has introduced a significant threat to the market. The release of such a huge amount of Bitcoin could saturate the market, driving prices down.
See Also: Mt Gox Exchange Has Made Huge Bitcoin Transfers To An Unknown Crypto Wallet
Simultaneously, the German government is adding to the downward pressure by selling off Bitcoin that has been confiscated in their crackdown on illegal activities involving cryptocurrencies. The sale of these seized assets is further contributing to the decline in Bitcoin prices.
Investors are on edge as these developments create a highly volatile market. The Mt. Gox selloff is expected to be secyio, with repayments distributed over several months, yet the uncertainty about the timing and volume of these selloffs is causing market instability.
The cryptocurrency market has endured similar crashes before, often followed by periods of recovery and growth.
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