- The already erratic cryptocurrency market is put under more strain by the Fed’s cautious approach to inflation.
- With the help of Mt. Gox, the greatest cryptocurrency liquidations since the collapse of FTX, totaling over $1 billion were sparked.
- The Mt. Gox transfer caused a 6% decline in the price of bitcoin, even though earlier research indicated little effect on the market.
In a few of hours, the price of Bitcoin (BTC) rose 6% in response to the news that Mt. Gox had moved both BTC and BCH to a new wallet. Yesterday saw the highest liquidations since the collapse of FTX, at over $1 billion, according to TradingView data posted by X user Honeybadger.
Even though Bitcoin recovered during the day, its price, which is currently $56,486.73, is still down 3% from the previous day. A few X users, however, provided a Coinglass chart in their comments on the publication, claiming that the data shared was inaccurate. In response, Honeybadger said that, contrary to what he had communicated, the data used in the remarks had not yet been updated.
Even though a CoinShares analysis showed that the BTC payments to Mt. Gox creditors wouldn’t have a significant effect on the market, investors sold their holdings out of fear of a decline, which is what caused the current price decline.
The pressure was increased by Jerome Powell’s recent address at Sintra, which reaffirmed the Fed’s cautious approach to inflation. Ben Kurland, the CEO of DYOR, believes that until the next Fed meeting, which is scheduled for July 31st, the price of Bitcoin and the entire cryptocurrency market may remain flat.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
