The biggest crash in the history of cryptocurrencies! Is this the end of Bitcoin?
The recent crash of Bitcoin has shaken the cryptocurrency world, leaving investors and enthusiasts in suspense. This spectacular drop raises crucial questions: will Bitcoin survive this unprecedented crisis? Nothing is certain.
The cryptocurrency market has recently gone through an unprecedented crisis. Investors, already worried about economic uncertainty, have found themselves facing a series of panic-triggering events.
The Aftermath of the Mt. Gox Collapse
The recent collapse of cryptocurrencies can partly be traced back to the bankruptcy of the Bitcoin exchange Mt. Gox. The distribution of nearly 9 billion dollars in Bitcoin to former Mt. Gox users triggered a chain reaction in the market.
Bitcoin saw its price drop by nearly 3%, falling to $56,571.00, while ether declined by 5% to reach $2,971.68. During this period, the total market capitalization of cryptocurrencies lost more than 170 billion dollars in just 24 hours.
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Mass Sell-offs and Regulatory Pressures
The deposition of Bitcoin by the German government added additional pressure to the market. Due to the liquidation of approximately 3,000 bitcoins, worth about 175 million dollars, cryptocurrency prices continued to fall. This wallet, seized as part of the operation against the Movie2k movie piracy, still contains over 40,000 bitcoins.
The severity of liquidations in the derivatives markets amplified the decline. According to data from Coinglass, 229,755 traders had their positions liquidated, totaling 639.58 million dollars, of which 540.46 million originated from long positions.
Temporal Uncertainties
Despite these upheavals, some experts remain optimistic about the future of the world’s largest cryptocurrency. The gradual diminishing of the negative effect of Mt. Gox refunds could lead to a price increase towards the end of the year.
The famous analyst Tom Lee from Fundstrat Global Advisors continues to believe in a potential rise of Bitcoin to $150,000, emphasizing that this residual pressure might soon dissipate.
Futuristic Perspectives: The Role of Ether ETFs
The approval by the SEC of new ETFs based on ether could also play a key role in revitalizing the market. The introduction of these funds would provide additional institutional recognition for cryptocurrencies, potentially increasing investor interest and confidence.
List of companies considering launching Ether ETFs:
– VanEck
– BlackRock
– Bitwise
– Galaxy Digital
Conclusion of a Cycle and Hope for Recovery
Finally, historical cycles of the cryptocurrency market suggest that periods of slowdown often follow “halving” events, where the amount of new bitcoins is halved. According to CCData, this period is still ongoing, which could mean the market is simply preparing for a new phase of expansion.
The importance of cryptocurrencies may continue to grow, and those who remain committed to understanding and navigating these cycles could continue to benefit from their investments in the medium to long term.
