The value of Bitcoin has reached a 21-day low and is now below $9000. Bitcoin value has dropped 12% in the last 24 hours and has reached $8649 (press time). The value Ether value clocked in a record high value of $1418 this February, and with more than 50% loss, the value of ETH is marked at $686 (press time). The price of generally all altcoins mimics the downward trend of Bitcoin and it is no different as of now, the first 100 altcoins are all written in red.
Mt. Gox: The Reason for Bitcoin Value Fall?
A bearish cryptomarket saw Bitcoin’s value reach $11,690 in the wee hours of the morning on March 6, and since then the market has dipped by 26%. In February the price fell and value of Bitcoin slipped below $6000 mark. The cryptomarket that time was trying to recover from the ban in China.
In we look a wholesome look, the value of Bitcoin is going in circles, the value increases to $12,000 encountering resistance and then again goes below $10,000. The major downfall in price has come due to Mt. Gox trustee panicking and selling $400 million worth of Bitcoins. Nobuaki Kobayashi, a Tokyo ‘whale’ has sold more than 35000 Bitcoin and 34,000 Bitcoin Cash to pay the defunct exchange’s creditors.
The cryptos were sold via exchange and with each individual sale, the cryptomarket saw a fall. The Former CEO of Mt. Gox confirmed that the transfers took place from December to February. Bitcoin value saw a massive hike of $20,000 and the media is speculating that the sales from Mt. Gox could be the reason the value of Bitcoin is seeing a continuous drop.
Mt. Gox was the largest BTC exchange in the world until February 2014 when hackers were able to breach the security and steal around 850,000 BTC. The search for culprit/s is still on while the exchange refuses to refund users who lost their Bitcoins.
(Data taken from CoinmarketCap)